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INTERNATIONAL. Catering and retail revenues at inflight specialist gategroup dipped by -2.9% to CHF743.7 million (US$814 million) in the first half of 2014, the company reported today. Revenues from the Airline Solutions division (of which catering and retail is part) fell -4.5% to CHF1,217.8 million (US$1,334 million) for the period.
Airline Solutions revenues in Europe were down partly due to the ending of Gate Retail Onboard’s contract with Norwegian, effective from 30 April.
The company noted: “In the second quarter there was a one-time impact of around CHF5 million due to the termination of the retail services contract with Norwegian Airlines (as previously disclosed) where Gate Retail Onboard was the merchant of record.”
As reported, Inflight Service now runs the contract to operate all onboard retail (duty free and food) and all pre-order retail (duty free and food), as well as managing all catering service providers.
Airline Solutions EBITDA reached CHF58 million (4.8% of revenues) in the first half of 2014 compared to CHF62.4 million (4.9% of revenues) during the same period in the previous year.
On a constant currency basis, revenues in the division increased by +1.5% in the first half of 2014 with EBITDA margin of 4.9%.
gategroup reported total revenue of CHF1,423.7 million for H1, a decrease of -2.8% compared to the prior year period. At constant currency total revenues grew by 2.7% to CHF 1,505.6 million during the first six months.
The loss for the reporting period was CHF6.5 million, substantially lower than the loss of CHF12.7 million in the same period in the previous year. This was mainly due to a positive foreign exchange result, partially offset by a higher tax expense.
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