LuxairGroup
LuxairGroup recorded an operating profit of 1.8 million Euros compared to 1.3 million Euros in 2014. Turnover was 505,435,089 Euros in 2015 compared to 495,208,121 Euros in 2014.
LuxairGroup’s long-term vision and constant efforts have made these positive results possible and allowed LuxairGroup to adapt its strategy to the unstable economic context, increasingly aggressive competition, successive political crises at some destinations, as well as new market realities that show a change in customer behaviour. “I am confident that our adaptability will help us maintain this growth momentum and I am sure that our group will be strong enough to cope with new challenges,” says Adrien Ney, President & Chief Executive Officer.
Nevertheless, LuxairGroup has not lost sight of its role as a responsible player, in spite of these obstacles and performance objectives. The customer is always at the centre when decisions are made about quality and services and noted growth opportunities, inter alia for cargo handling, has provided an impetus to the local employment market. “The challenges we have had to face and business opportunities in 2015 have not only allowed us to promote our specificities and distinguish ourselves in the aviation industry but also at a regional economic level,” ensures Paul Helminger, Chairman of the Board of Directors.
LuxairGroup shareholders changed as Delfin replaced Lufthansa in March 2016 following their decision to sell their 13% shareholding in 2015. Mr. Giovanni Giallombardo, Member of the Management Board of Delfin Sàrl therefore replaced Mr. Karsten Benz, who represented Lufthansa on LuxairGroup’s Executive Board. Furthermore, Mr. Hugues Delcourt replaced Mr. Francois Pauly as representative on the Banque Internationale à Luxembourg S.A. Executive board.

Luxair Luxembourg Airlines
Luxair Luxembourg Airlines recorded significant growth in passenger numbers for the third year running, whilst managing to improve its operating profit. Luxair Luxembourg Airlines’ growth strategy in terms of financial and operating performance, initiated in 2012 is yielding positive results. Increased frequencies on the most popular scheduled flights, an optimised flight plan and a simplified fare structure, as well as a wider range of products provide substantial benefits for travelers, who can therefore plan their business or leisure trips in optimal conditions.
The Airline transported 1,208,470 passengers, representing an increase of 11% compared to the previous year, in spite of terminating its long-standing route to Frankfurt, which used to have four daily rotations.

Over the last three years, passenger numbers increased on average by 13% per year. Destinations introduced in 2014 saw a spectacular increase in 2015: passenger numbers to Dublin rose by 56%, to Stockholm by 88%. Luxair’s main destination to London-City, operated seven times daily, registered a 12%-increase.
Operating results for this business unit were significantly reduced by a loss of 3.6 million Euros compared to a loss of 8.4 million Euros in 2014.

LuxairTours
LuxairTours’ Tour operator and chartered flights business unit had to cope with a difficult year due to terrorist incidents in some leading destinations and were forced to reduce frequencies and even stop some of them, such as Turkey, Tunisia and Egypt. The 2015 terrorists attacks in France also had a negative impact on demand.
LuxairTours had to accept a stagnation in passenger numbers from Luxembourg instead of the anticipated increase, after having directed part of its customer to alternative destinations. This situation had a negative outcome on its profitability, as a significant number of other tour operators also focused on the same destinations, resulting in increasingly intense competition and reduced profit margins. 606,279 passengers were transported by LuxairTours in 2015, representing a 1%-increase compared to 2014, with a slight drop load factor of 76.1%.
Operating results dropped to 3.9 million Euros, after having reached 10.1 million Euros in 2014.

LuxairCARGO
The Cargo handling business unit handled 759,000 tons in 2015 compared to 725,000 in 2014, representing an increase of 5%, which reflects the increase of volumes transported by LuxairCARGO’s main customers. There were 5,292 aircraft movements, which represent a 5%-increase. Operating results reached 2.7 million Euros, compared to 1.7 million Euros in the previous year.
The increase in LuxairCARGO’s activities had a positive effect on employment as almost 80 new staff members were recruited by LuxairCARGO in 2015.

LuxairServices
LuxairServices benefited from the constant increase in passenger numbers at Luxembourg airport, slightly more than other European airports. This business unit served 2.7 million passengers and handled 41,600 commercial flights, representing an increase of 3%.
Catering services served 1,984,000 meals in 2015, representing a 7%-increase compared to 2014.

Perspectives
As a whole, 2016 started well for LuxairGroup with a 2% passenger increase on scheduled routes from January to April compared to the same period in 2015 and all this in spite of ending the Frankfurt route. Activity levels and reservations for the tour-operator business unit showed an increase in “flight only” and a drop in package holidays. The general feeling of insecurity linked to the terrorist attacks perpetrated at the beginning of the year are still having a negative impact on tour operator business. LuxairCARGO saw an increase at the beginning of the year in volumes handled, which should continue throughout the year. The positive trend in recruitment in 2015 has continued into 2016. 90 staff members were already recruited between January and May for this business unit and 270 staff members have been recruited since the beginning of the year for LuxairGroup activities as a whole.
“Although 2015 could be considered as being a good year, 2016 will be an acceptable one, due to the negative impact of competition and geopolitical conditions on our business units. This is why we already need to start preparing for post-2016, with ever increasing competition and heavy investments to be carried out or to be prepared,” concluded Adrien Ney.

The 2015 Annual Report is available on www.luxairgroup.lu.