newstodate.aero
Apr 2, 2013 (newstodate): The Latvian carrier airBaltic seems to be well under way towards reaching its goal: a return to profitability in 2014.
airBaltic has just released its 2012 audited result, proving that it has surpassed its original business turnaround plans, and is currently on track to reach profitability.
airBaltic thus achieved a 15 percent increase, y-o-y, in revenue per available seat kilometres over the twelve months of 2012, generating stable revenues of 228.5 million LVL despite capacity reductions.
Compared to 2011, airBaltic's operating costs were reduced by LVL 58 million to LVL 248 million.
The carrier has actually been performing above planned targets every month in 2012 and is thus ahead of schedule for achieving the coveted goal of profitability in 2014.
Still, the carrier's revenue was down one percent, y-o-y, reflecting the decrease in production through slimming of the aircraft fleet, downsizing of the organization and trimming of the route network.
-We earn more money on each seat in production, but production has been tailored to focus on optimization of the route network securing enhanced services on key routes as well as a stronger focus on shorter transfer times at our hub at Riga Airport, says Janis Vanags, airBaltic VP Corporate Communications.
-In 2012 about 25 percent of all flights had one hour connection time at Riga Airport. In 2013 this has been further increased to 50 percent of all flights, which is a better product marketed at higher rates.
-Also ancillary income is growing significantly which will further add to gaining momentum in our efforts to become profitable again in 2013, says Mr Vanags.
airBaltic has just released its 2012 audited result, proving that it has surpassed its original business turnaround plans, and is currently on track to reach profitability.
airBaltic thus achieved a 15 percent increase, y-o-y, in revenue per available seat kilometres over the twelve months of 2012, generating stable revenues of 228.5 million LVL despite capacity reductions.
Compared to 2011, airBaltic's operating costs were reduced by LVL 58 million to LVL 248 million.
The carrier has actually been performing above planned targets every month in 2012 and is thus ahead of schedule for achieving the coveted goal of profitability in 2014.
Still, the carrier's revenue was down one percent, y-o-y, reflecting the decrease in production through slimming of the aircraft fleet, downsizing of the organization and trimming of the route network.
-We earn more money on each seat in production, but production has been tailored to focus on optimization of the route network securing enhanced services on key routes as well as a stronger focus on shorter transfer times at our hub at Riga Airport, says Janis Vanags, airBaltic VP Corporate Communications.
-In 2012 about 25 percent of all flights had one hour connection time at Riga Airport. In 2013 this has been further increased to 50 percent of all flights, which is a better product marketed at higher rates.
-Also ancillary income is growing significantly which will further add to gaining momentum in our efforts to become profitable again in 2013, says Mr Vanags.