newstodate.aero
Sep 23, 2014 (newstodate): Latvia's carrier airBaltic is feeling the impact from the conflict between Ukraine and Russia.
Basing its business model on transit traffic via Riga Airport as its hub, the shortfall of business and tourist traffic between Russia/Ukraine and European destinations has manifested itself in declining passenger volumes and lower revenues, as confirmed by airBaltic's CEO, Martin Gauss speaking to a Latvian business media.
airBaltic is thus still foreseeing ending 2014 with profits but on a reduced level at around nine mio euro according to current estimates, compared to 14.5 mio euro profits after H1 2014.
According to the interview, Mr Gauss warns that developments can still go either way, and in any case it will take time to rebuild the former traffic patterns due to changes over the recent months in passengers' travel habits and needs.
Basing its business model on transit traffic via Riga Airport as its hub, the shortfall of business and tourist traffic between Russia/Ukraine and European destinations has manifested itself in declining passenger volumes and lower revenues, as confirmed by airBaltic's CEO, Martin Gauss speaking to a Latvian business media.
airBaltic is thus still foreseeing ending 2014 with profits but on a reduced level at around nine mio euro according to current estimates, compared to 14.5 mio euro profits after H1 2014.
According to the interview, Mr Gauss warns that developments can still go either way, and in any case it will take time to rebuild the former traffic patterns due to changes over the recent months in passengers' travel habits and needs.