SWISS substantially improves its annual EBIT result

23 March 2006

Swiss International Air Lines (Group) increased its total income from operating activities to CHF 3732 million in 2005 (prior year: CHF 3642 million). Despite the higher price of jet fuel, the net result from operating activities (EBIT) before restructuring costs was improved to minus CHF 14 million (prior year: minus CHF 122 million).

In addition to restructuring costs of CHF 41 million, results for 2005 were reduced by currency exchange value adjustments (non-cash book losses) of CHF 65 million on outstanding US dollar-denominated debt. It is principally to these two factors that the higher year-on-year net loss of CHF 178 million (prior year: minus CHF 140 million) can be ascribed.

SWISS reports a net result from operating activities (EBIT) before restructuring costs of minus CHF 38 million for the fourth quarter of 2005 (prior-year period: minus CHF 123 million) and a net loss for the period of CHF 97 million (prior-year period: minus CHF 123 million). SWISS held cash and cash equivalents of CHF 558 million on December 31, 2005 (December 31, 2004: CHF 481 million).