GuestLogix Provides Q2 Outlook & Comments on Current Airline Industry Trends



    Company sees growth opportunity with partners as airlines unbundle ticket
    prices & innovate services to offset rising fuel costs

    TORONTO, June 11 /CNW/ - Toronto-based GuestLogix Inc. (TSX-V:GXI) a
leading provider of on-board retail systems to the passenger travel industry,
today provided its outlook for Q2 fiscal 2008 and commented on the impact of
escalating fuel costs on its business. Despite the operating volatility
experienced by its airline customers, resulting from record high jet fuel
prices, GuestLogix remains on track to report record revenues that will fall
within analysts' estimates for the second quarter ended May 31, 2008.
    "It's obvious that airlines are going through tough times right now with
the rise in fuel prices," said Tom Douramakos, President and CEO at
GuestLogix. "However, through the combination of our on-board retailing
technology platform, merchandising programs and back office control system, we
enable airlines to become effective retailers. This introduces new on-board
revenue streams that help offset rising operating costs. We believe that the
current industry challenges provide a growth opportunity for GuestLogix, and
we continue to successfully execute our business plan to capture one billion
passenger trips under contract by the end of 2008."
    GuestLogix has signed some of the biggest names in the airline industry,
such as American (NYSE:  AMR), Delta (NYSE:  DAL), and Ryanair (LSE:RYA.L). It has
captured more than 50% of the passenger trips represented by the top 20
airlines in North America. The Company has deployed its proprietary mobile
Mobile Virtual Store(TM) technology platform to support 200 million passenger
trips among airlines and has a backlog of 400 million passenger trips, which
the Company expects to have fully deployed by the end of the summer travel
season.
    High fuel prices have forced airline operators to begin upgrading their
old fleets more rapidly with newer, more fuel-efficient planes, as well as
adopt on-board retail programs incorporating the sale of snacks, non-alcoholic
drinks such as bottled water and coffee, and virtual merchandise such as
attraction tickets and airport transfers. Many airlines are developing retail
programs that span all the customer touch-points starting with flight
reservation on the airlines' Web sites and ending with the passenger's return
home. GuestLogix has created an on-board model that allows operators to get
into retailing in as little as four weeks depending on the fleet size.
    With passenger ticket prices returning 2% to 4% margins and non-ticket
revenues delivering 40% or more in profits, GuestLogix anticipates that
airlines worldwide will work to continue to introduce new revenue building
programs. North American airline operators are currently generating about
50 cents per passenger from on-board sales. However, GuestLogix believes there
is potential for this to grow to $5 or $6 per passenger, to be more in line
with on-board revenue generated by European-based innovator Ryanair.
    GuestLogix has established an expansive footprint spanning Europe, Asia
Pacific and North America. It has also partnered with the world's largest
caterer and logistics provider to airlines, Lufthansa Group's LSG Sky Chefs.
In addition, the Company is working to integrate third-party products and
services to offer new on-board merchandising options. GuestLogix recently
announced exclusive deals with SkyMall, the largest on-board catalog
advertiser, and Ticket-Ops, an online attraction ticket service, both of which
the Company expects to launch on flights this summer in the U.S.
    "Airlines have demonstrated that by providing choices, such as flight
features, meals, hotel, car rental, and even insurance through their booking
Web sites they can yield substantial incremental and profitable revenues,"
said Michael Smith, Managing Director at SeaMountain, a U.K.-based airline
marketing consultancy. "Operators can enhance their value proposition with
ancillary sales, and most customers are quite receptive to these services if
they are well thought out and executed through a continuum of experience."

    About GuestLogix

    GuestLogix is the leading provider of on-board retail technology and 
solutions to the passenger travel industry. Through its proprietary Mobile
Virtual Store(TM) platform, the Company provides air, rail and ferry operators
the tools to become successful on-board retailers, enhance service and drive
ancillary revenue growth. With a customer base consisting of world leading
airlines such as American Airlines, Delta Air Lines, Ryanair, Air Canada and
Alaska Airlines, GuestLogix maintains contracts to serve more than 600 million
passenger trips annually. For additional information please visit
guestlogix.com.

    Forward-Looking Statements

    This news release includes certain forward-looking statements that are
based upon current expectations, which involve risks and uncertainties
associated with GuestLogix' business and the environment in which the business
operates. Any statements contained herein that are not statements of
historical facts may be deemed to be forward-looking, including those
identified by the expressions "anticipate", "believe", "plan", "estimate",
"expect", "intend", and similar expressions to the extent they relate to the
Company or its management. The forward-looking statements are not historical
facts, but reflect GuestLogix' current expectations regarding future results
or events. These forward-looking statements are subject to a number of risks
and uncertainties that could cause actual results or events to differ
materially from current expectations, including the matters discussed under
"Risks and Uncertainties" in the Filing Statement filed on April 23, 2008 with
the regulatory authorities. GuestLogix assumes no obligation to update the
forward-looking statements, or to update the reasons why actual results could
differ from those reflected in the forward-looking statements.

    (C) 2008 GuestLogix. All Rights Reserved.

    The TSX Venture Exchange Inc. has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release

    %SEDAR: 00024725E




For further information:

For further information: Media/Analysts: Josef Zankowicz, VP Marketing &
Communications, GuestLogix, (647) 500-1563, josefz@guestlogix.com; Michael
Smith, Managing Director, SeaMountain, +44 141 416 0800,
Michael@seamountain.co.uk; Investors: Kristen Dickson, Equicom Group, (416)
476-7814, kdickson@equicomgroup.com

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