Barcelona-based Vueling tripled its profits in 2012 and became the third airline in Paris-Orly

Barcelona (ACN).- Vueling earned a net profit of €28.3 million in 2012, almost three times more than the €10.3 million of 2011, according to the results presented by the Catalan company on Wednesday. Vueling transported 14.8 million passengers, 20.1% more than in the previous year. Furthermore, the airlines’ occupancy rate reached 77.7%, while in 2011 it was 75.6%. The Barcelona-based airline continues with its international expansion, especially in Europe, and it has become the third largest airline in Paris-Orly and Roma-Fiumicino. It also increased the passenger traffic share it controls in Barcelona El Prat Airport by up to 30%. The total revenue reached €1.103 billion last year, 27.7% more than in 2011. The number of passengers transported by Vueling increased by 20.1%, partially due to the bankruptcy of Spanair, one of its main competitors in Barcelona. Furthermore, Vueling’s operational profit (before taxes and interest) reached €33.2 million in 2012, 192% more than in 2011. The Catalan company has developed a particular business model, mixing low prices – as it was started as a low-cost airline – with services offered by flagship airways, such as flight transfers and business services. On Tuesday, the Spanish Stock Market Authority (CNMV) has authorised IAG’s take-over operation of Vueling, aiming to take total control of the Catalan company.

The number of passengers transported by Vueling reached 14.8 million, 20.1% more than the figures for 2011. The increase is partially due to the bankruptcy of one Vueling’s main competitors in Barcelona El Prat Airport, Spanair, which stopped flying in late January 2012, thirteen months ago. Vueling reacted quickly and was able to occupy part of Spanair’s market share.

More passengers connecting to other flights through Barcelona El Prat

Flight connections offered by Vueling from its Barcelona El Prat base significantly increased, using the Catalan capital’s airport as a hub. The number of people flying with Vueling and connecting with another flight through El Prat Airport doubled, reaching 1.6 million in 2012. This strategy enabled Vueling to control 30% of El Prat’s passenger traffic in 2012.

Vueling’s total traffic through Barcelona El Prat increased by 2% in 2012, balancing the drop within the domestic market due to the economic recession with 10% of passengers connecting to European cities via the Catalan capital.

77.7% occupancy rate

However, Vueling had already been significantly increasing its passenger figures and its occupancy rate over the last few years. In fact, 2012 was no exception and the Barcelona-based airline’s occupancy rate increased from 75.6% in 2011 to 77.7% in 2012. On top of this, the average revenue per passenger rose to €74.2, 5.9% more than in 2011.

€1.1 billion revenue

Vueling’s total revenue reached €1.103 billion last year, 27.7% more than in 2011. Their total spending increased by 25.5% compared to the previous year. Vueling’s major spending increase is on fuel, since it now operates more flights and fuel prices increased all over the world. Vueling’s expenditure on fuel increased by 34.1%, and the rest increased by 21.9%.

IAG’s take-over on Vueling is authorised

On Tuesday, it has also been known that the Spanish Stock Market Authority (CNMV) has authorised IAG’s take-over operation of Vueling, aiming to take total control of the Catalan company. In November, the IAG group – resulting from the merger between British Airways and Iberia – formalised a take-over of 54.15% of Vueling’s shares (16,193,297 shares). The other 45.85% was already owned by Iberia. Therefore, the take-over operation would mean taking 100% control of Vueling. IAG launched an initial offer of 7 euros per share, with a 28% bonus. The final result will be known in the coming weeks.