Estonian Air reduces its loss by 83% in 2013 to $11 million

Estonian Air (Tallinn) is in the process of turning around its financial future through a restructuring plan. The company reported its net loss was reduced by 83 percent to $11 million for 2013.

The company issued this financial statement:

The results are in line with restructuring plan which is reflected by the positive operating result of 7.4 million euros. 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. For the full year, the airline’s operating loss amounted to 4.2 million euros.

In 2013, the sales revenue of Estonian Air was 72.3 million euros. The company’s gross profit was 7.4 million euros and net loss 8.1 million euros ($11 million).

Compared to 2012, the sales revenue was 21% less. The gross profit increased by 147% and net loss was reduced by 83%. The loss of the airline in 2012 was 49.2 million euros.

“Estonian Air is in a much better position today than it was on November 1, 2012, when I took over as Chairman of the Management Board and CEO of Estonian Air. My mandate was to restructure the airline to sustainable operations. The airline has taken all the planned steps to reach that goal,” said Jan Palmér, the CEO of Estonian Air.

“The European Commission’s investigations into prior instances of state aid as well as the airline’s Restructuring Plan are ongoing. Together with our shareholder representatives, we are working to ensure that the decision expected in the near-term future will be positive,“ added Palmér.

According to Mr. Palmér, Estonian Air has downsized its operations to develop the airline into an efficient regional player focused on the Nordic and emerging nearest neighboring markets. “We have reduced the network to ten core destinations which is served with five aircraft, and turned the service concept to a regional model during the restructuring process,“ explained Palmér.

The total number of Estonian Air’s passengers in 2013 was 551 169, which is 37.9% less than in 2012. With the excess aircraft the airline increased its number of charter flights almost five times from 44 to 209.

Copyright Photo: Stefan Sjogren/ Estonian Air downsized to a regional carrier as part of its restructuring plan. The fleet is now centered around three Bombardier CRJ900s and four Embraer 170s leased from Finnair. ERJ 170-100LR ES-AED (17000112) arrives in Stockholm (Arlanda).

Estonian Air: