Estonian Air (Talinn) reported a deepening loss of $7.9 million for first nine months of 2014 due to increased competition.
The company issued this full report:
The total revenue of Estonian Air was 52.2 million and loss 6.4 million euros ($7.9 million) in nine months. Last year the revenue was 55.4 million, and the loss 6 million euros ($7.4 million) in the same period.
“The results of the third quarter were below our earlier forecasts. Although we have increased the number of passengers, added flights to several existing routes and opened new destinations, at the same time the pressure on ticket prices has increased remarkably. Intensified competition on the aviation market and continuous unstable situation on our Eastern market has significant impact on our financial results,” commented Jan Palmér, the CEO of Estonian Air.
In the third quarter 2014, the revenue was 19.3 million and the net loss 1.4 million euros.
Within the third quarter Estonian Air carried altogether 161 000 passengers, out of which 152 000 on regular flights. In nine months Estonian Air carried 403 000 passengers which is 5 per cent less than the same period last year.
Estonian Air has increased its share on Tallinn based charter market. In addition, Estonian Air has signed charter agreements with several Estonian travel agencies to operate during the winter and summer flight period which will help the company to utilise the free capacity of the aircraft more efficiently.
The Council of Estonian Air approved the modified restructuring plan to be submitted to the European Commission by the end of October this year. Upon approval of the restructuring plan Infortar Group will invest into the company, which is anticipated in Spring 2015. The changes in the ownership structure must be approved beforehand by the Government of Estonia.
Estonian Air, Estonia’s national carrier, is the biggest operator at Tallinn Airport. The airline flies regular routes to Stockholm (Arlanda and Bromma), Copenhagen, Amsterdam, Brussels, Oslo, Moscow, Munich, St Petersburg, Kiev, Vilnius and Trondheim. In addition, from December 2014 to March 2015, Estonian Air will add seasonal flights to Munich and from April to November 2015 to Milan.
Copyright Photo: Stefan Sjogren/AirlinersGallery.com. Embraer ERJ 170-100LR ES-AEA (msn 17000093) arrives in Stockholm (Arlanda).