newstodate.aero
May 15, 2014 (newstodate): Estonian Air is advancing in its arduous struggle to securing profitability after years in dire straits.
The 2013 figures, just released, show that while sales revenue was down 21 percent, y-o-y, in 2013, the gross profit increased by 147 percent and the net loss was reduced by 83 percent.
While the net loss in 2012 was 49.2 mio euro, this was thus reduced to 8.1 mio euro in 2013.
The results are in line with restructuring plan which is reflected by the positive operating result of 7.4 mio euro. Estonian Air's core business turned profitable in the second and third quarter, and in 2013 the airline managed to post its first positive monthly result in over three years.
Under its new CEO, Jan Palmer who took office on November 1, 2012, Estonian Air presented its restructuring plan to the Estonian government on January 31, 2013, and immediately started the process of reducing the flights schedule, adjusting the route network, tailoring the staff and implementing a wide range of cost-cutting measures to end up with a carrier serving only 10 scheduled core destinations as well as offering charter and ad-hoc services.
-While in 2013 the main focus was on restructuring and turning over the company, in 2014 the focus will be on ensuring balanced and sustainable development and elaborating services, says Jan Palmer in a comment to the annual result.
Looming on the horizon is still the outcome of an investigation by the EU Commission to verify if a state grant for a 8.3 mio euro loan to Estonian Air falls within acceptable limits.
Should the verdict of the Commission require the carrier to repay the state aid, Estonian Air would most probably face bankruptcy despite ongoing and successful efforts to turn the carrier around.
If the verdict supports Estonian Air, the carrier would be in shape for the state to sell part of its stake to another party.
The 2013 figures, just released, show that while sales revenue was down 21 percent, y-o-y, in 2013, the gross profit increased by 147 percent and the net loss was reduced by 83 percent.
While the net loss in 2012 was 49.2 mio euro, this was thus reduced to 8.1 mio euro in 2013.
The results are in line with restructuring plan which is reflected by the positive operating result of 7.4 mio euro. Estonian Air's core business turned profitable in the second and third quarter, and in 2013 the airline managed to post its first positive monthly result in over three years.
Under its new CEO, Jan Palmer who took office on November 1, 2012, Estonian Air presented its restructuring plan to the Estonian government on January 31, 2013, and immediately started the process of reducing the flights schedule, adjusting the route network, tailoring the staff and implementing a wide range of cost-cutting measures to end up with a carrier serving only 10 scheduled core destinations as well as offering charter and ad-hoc services.
-While in 2013 the main focus was on restructuring and turning over the company, in 2014 the focus will be on ensuring balanced and sustainable development and elaborating services, says Jan Palmer in a comment to the annual result.
Looming on the horizon is still the outcome of an investigation by the EU Commission to verify if a state grant for a 8.3 mio euro loan to Estonian Air falls within acceptable limits.
Should the verdict of the Commission require the carrier to repay the state aid, Estonian Air would most probably face bankruptcy despite ongoing and successful efforts to turn the carrier around.
If the verdict supports Estonian Air, the carrier would be in shape for the state to sell part of its stake to another party.