Results for the 2002 business year

14 March 2003

SWISS generated consolidated total operating revenue of CHF 4278 million for 2002 and sustained a loss of CHF 980 million for the year. The overall annual results were better than originally envisaged. The bottom-line result was adversely affected by exceptional expenditure totalling CHF 322 million. Net of these non-recurring items, the loss for the year amounted to CHF 658 million.

SWISS reported earnings before interest and taxes (EBIT) of CHF -909 million for 2002 on total operating revenue of CHF 4278 million. The EBIT result was diminished by various non-recurring exceptional expenditure items. The company incurred some CHF 180 million in one-off costs deriving from its expansion from a European regional airline into an air carrier operating an intercontinental route network and its introduction of the new SWISS brand. Exceptional expenditure was also incurred through value adjustments effected to the aircraft fleet and in connection with the enforced administration of the SAirGroup. SWISS posted a sizable net loss after financing costs of CHF 980 million in its first year of operation. Excluding non-recurring exceptional expenditure items, the company sustained a loss of CHF 658 million for the year.

In view of the continuing economic recession and the radical crisis afflicting the world airline industry, SWISS took action as early as the end of February to modify its route network and downsize its aircraft fleet.

Balance sheet

The balance sheet total amounted to CHF 4668 million at December 31, 2002. The company held CHF 1256 million in cash, fixed-term deposits and fixed-interest securities at year-end. After incorporation of the loss for the year, shareholders‘ equity stood at CHF 1709 million, giving a balance sheet equity ratio of 36.6%.

SWISS’s full financial statements for the 2002 business year will be published on March 25, 2003 and commented on at length at the company’s Annual Results Media Conference. In the meantime, SWISS will not be commenting further on its annual results.