With the election in Egypt last week of former army chief Abdel Fattah Al Sisi as the new president, a nation and a region awaits a potential period of stability in the troubled Arab state. And one company that is desperate for calm is the flag carrier EgyptAir.
- EgyptAir website
“We expect some indication of recovery, especially after the presidential election,” said Sameh El Hefny, the chairman and chief executive of the government-owned airline.
The airline is in a period of restructuring. It is cutting capacity by 10% on its network by reducing frequencies on flights and quitting a few routes. Mr. Hefny expects to report a loss of 2.5 billion Egyptian pounds in the full year ending June.
EgyptAir hopes the changes will grow passenger numbers and increase its load factor. The airline carried 9 million people last year, with Saudi Arabia its largest market. Its aircraft were 62% full, which Mr. Hefny believes can grow to 70% once capacity is reduced and if the economy improves.
The airline had planned to run a fleet of 127 jets by 2025. But given the current economic pressures, Mr. Hefny leased 2 Boeing Co. 777-200 aircraft to Biman Airlines and 5 narrow-body aircraft to local companies.
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(via WSJ Blogs)
