Clarification of comments made by CEO Christoph Franz in an interview in the Aeropers members’ newsletter (No. 5/2004)

08. November 2004

Christoph Franz, President and Chief Executive Officer of SWISS, made a comment during an interview published in Issue 5 of the journal of the Aeropers pilots’ union about the success of the ongoing internal cost-reduction and earnings-enhancement programmes which has led to speculation in the media over the company’s business results. In making this comment, Christoph Franz put a figure of between CHF 300 and 400 million on the improvements achieved through the company’s personnel.

These comments were intended to make clear to SWISS staff that, while the current results-enhancement programmes have been successful, further measures are required to achieve the turnaround. Christoph Franz’s comments do not in themselves offer any concrete indication of business results for the current year, since these remain influenced by further important cost and revenue factors.

SWISS is abiding by its policy of not issuing any forecasts of its bottom-line results for the current business year. SWISS will not be commenting further on the present clarification or – in particular – on the interpretations and conclusions published in the media regarding its likely business results for the current financial year.

SWISS will be publishing its third-quarter interim results on November 16, 2004.