Airline Caterer Do & Co Counting On Revival Of Onboard Meals After Quarterly Loss
Airline catering group Do & Co has reported a loss for the April-June quarter as coronavirus-related travel bans, event cancellations and restaurant closures took a toll.
Revenues from the Austrian group's core airline catering business slumped by 86% from a year earlier during the period, which was its fiscal first quarter. However, it said that there are positive signs as more and more airlines are starting to serve food onboard again as passengers, particularly in premium classes, have become dissatisfied with services on offer.
The outlook for Do & Co's business as a whole will continue to be affected by the pandemic.
"In the coming quarters of the business years 2020/2021, the net result will generally be strongly affected by the COVID-19 situation as well," the group said in its earnings release.
Do & Co shares, which have more than halved in value since the beginning of the year, fell as much as 2.85%.
The group, which also caters for German soccer club Bayern Munich and operates Vienna's famous Demel café, said that further restructuring is likely, but did not give details.
In June, it said that it was evaluating the closure of some of its 32 kitchens located in 12 countries, where customers include Turkish Airlines, Lufthansa's Austrian Airlines and Cathay Pacific.
Net Loss, Revenue And Restaurant Business
Do & Co reported a first-quarter net loss of €22.15 million following a profit of €5.7 million the previous year. Revenue dropped by 87% to €32.5 million.
Do & Co said that its restaurant business is picking up and that post-lockdown revenue at some of its locations in Vienna was even higher than in the same period of last year.
However, the Demel café, which is usually much frequented by international travellers, will be closed until further notice.