Revenue of Estonian Air Rose & Loss Declined Significantly in 1Q
OREANDA-NEWS. May 14, 2013. In the first quarter the revenue of Estonian Air was EUR 16.2 million and net loss 4.9 million. The revenue increased approximately by 5% and loss decreased by 40% compared to the same period last year.
In the first three months, Estonian Air carried 121 700 passengers, which is 13% less than the same period last year.
“Estonian Air started with extensive restructuring process in January and regarding this we have reviewed critically our network and all cost items,” commented Jan Palmer, the CEO of Estonian Air. The results of the first quarter give us confidence of being on a right track with the restructuring– we have succeeded to reduce the loss significantly and at the same time increase revenue with less passengers.”
The aim of the restructuring process is to reach sustainability in Estonian Air operations. “The current developments in our restructuring progress give us hope that Estonian Air will reach the break-even point in core business on a monthly basis at some point during the summer season. The main objective is to reach profitability by the year 2015,” added Palmer.
According to Palmer the detailed restructuring plan of Estonian Air, which is also bases for recapitalizing the airline, was forwarded to the shareholders in the end of April. The Estonian Government approved the restructuring plan on 2 May 2013.
Estonian Air flies to Stockholm, Copenhagen, Amsterdam, Brussels, Oslo, Moscow, St Petersburg, Kiev, Vilnius and Trondheim. In addition, from June to August, Estonian Air will fly between Tallinn and Paris, and from May to September to Nice.
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