newstodate.aero
Apr 03, 2014 (newstodate): The Latvian carrier airBaltic has gained one year on its way towards recovery, attaining profitability in 2013 already.
So far the goal stated called for a return to profitability in 2014, but according to the company's 2013 figures, the carrier ended the year with a two mio euro net profit compared to minus 27 mio euro in 2012, and is thus one year ahead of the original schedule in its restructuring plan, which is the basis for a sustainable long-term return to profitability.
The volume of passengers transported in 2013 was five percent down on the preceding year - but while the revenue remained unchanged, yields were up by five percent, y-o-y, thanks to a wide range of measures taken including route network and services streamlining, cost-cutting efforts and cost-efficient utilization of aircraft and manpower.
The carrier is thus regaining its health ahead of the long-awaited outcome of the ongoing EU probe since November 2012 into Latvian state loans in support of its restructuring process which also has limited the carrier's ability to increase its total production.
Expectations are that the EU Commission will announce its verdict this summer before the current EU Commissioners step down after the election of a new EU Parliament.
If the verdict comes out in favor of Latvia and airBaltic, the carrier may embark on a new strategy of development, growth and fresh aircraft orders, as well as finalizing talks with a potential partner to take a stake in the airline.
So far the goal stated called for a return to profitability in 2014, but according to the company's 2013 figures, the carrier ended the year with a two mio euro net profit compared to minus 27 mio euro in 2012, and is thus one year ahead of the original schedule in its restructuring plan, which is the basis for a sustainable long-term return to profitability.
The volume of passengers transported in 2013 was five percent down on the preceding year - but while the revenue remained unchanged, yields were up by five percent, y-o-y, thanks to a wide range of measures taken including route network and services streamlining, cost-cutting efforts and cost-efficient utilization of aircraft and manpower.
The carrier is thus regaining its health ahead of the long-awaited outcome of the ongoing EU probe since November 2012 into Latvian state loans in support of its restructuring process which also has limited the carrier's ability to increase its total production.
Expectations are that the EU Commission will announce its verdict this summer before the current EU Commissioners step down after the election of a new EU Parliament.
If the verdict comes out in favor of Latvia and airBaltic, the carrier may embark on a new strategy of development, growth and fresh aircraft orders, as well as finalizing talks with a potential partner to take a stake in the airline.