newstodate.aero
Aug 22, 2012 (newstodate): Success in airline business is obviously not about increasing the volume of passengers - rather securing a higher income from sales and, not least, lower unit costs.
In July 2012, the Latvian carrier airBaltic reports a drop in passenger volume by 15 percent, y-o-y, to 322,430, carried on 19 percent fewer flights, compared to July 2011.
In January-July 2012, the airline transported 12 percent fewer passengers on its flights that decreased by 16 percent in volume.
Eventually, the airline kept its load factor unchanged in both July 2012 and January-July 2012, compared to 2011, namely 80 percent and 73 percent, respectively.
But in July 2011, the volume of passengers transported increased by three percent, y-o-y, and in January-July 2011 by seven percent, while load factor in July 2011 and January-July 2011 was up by four and six percentage-points, respectively.
So in 2011, airBaltic was still expanding, in 2012 it is retracting under the airBaltic ReShape cost-cutting program that has, however, produced continuous increases in monthly net results.
So airBaltic's adjusted hopes are to return to black all-year figures in 2014, brought about by optimized utilization of human and material resources and lower unit costs boosted by a more fuel-efficient aircraft fleet.
Obviously, the quest for mere passenger volumes and opening of a steady flow of new destinations has been suspended.
In July 2012, the Latvian carrier airBaltic reports a drop in passenger volume by 15 percent, y-o-y, to 322,430, carried on 19 percent fewer flights, compared to July 2011.
In January-July 2012, the airline transported 12 percent fewer passengers on its flights that decreased by 16 percent in volume.
Eventually, the airline kept its load factor unchanged in both July 2012 and January-July 2012, compared to 2011, namely 80 percent and 73 percent, respectively.
But in July 2011, the volume of passengers transported increased by three percent, y-o-y, and in January-July 2011 by seven percent, while load factor in July 2011 and January-July 2011 was up by four and six percentage-points, respectively.
So in 2011, airBaltic was still expanding, in 2012 it is retracting under the airBaltic ReShape cost-cutting program that has, however, produced continuous increases in monthly net results.
So airBaltic's adjusted hopes are to return to black all-year figures in 2014, brought about by optimized utilization of human and material resources and lower unit costs boosted by a more fuel-efficient aircraft fleet.
Obviously, the quest for mere passenger volumes and opening of a steady flow of new destinations has been suspended.