Luxair records record 16.3 million euro loss

(CS) Luxembourg airline Luxair recorded a loss of 16.3 million euros in 2011, according to Radio 100.7, mainly due to rising staff costs, as well as high fuel prices.

The loss marks another bad year for the airline, which already experienced difficulties in 2010, leading to the discontinuation of Luxair's routes to Dublin and Prague.

While Luxair had not yet released an official statement, it is said management will present a new strategic plan for the airline to the board, as the outlook for 2012 shows a continuation of the downward trend.

However, it is not due to passenger numbers that the company's profits dwindled. More passengers opted for the Luxembourg airline than previously, but rising costs led to a loss of profitability of many routes. More and more people were also waiting for last minute offers, the media report continues.

More positive was the outlook for Luxair Tours, which recorded a 23 percent increase in profits.

While cargo operations saw a slight profit, activity at Findel decreased by 8 percent making the airport only the eighth most important cargo airport in Europe in 2011. Findel ranked fifth the year before.

A spokesperson for Luxair was not immediately available for comment.