Tag Archives: 17000093

Estonian Air’s loss for the first nine months widens to $7.9 million

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).

Estonian Air aircraft slide show: AG Slide Show

Estonian Air narrows its first half loss to $6.6 million

Estonian Air (Tallinn) reported a first half net loss of €5 million ($6.6 million), down from a net loss of €6.1 million ($8.0 million) in the same period a year ago.

The airline issued this full financial statement:

Despite tougher competition Estonian Air improved its half year net result by 18%. In the first half of 2014, Estonian Air’s revenue amounted to EUR 32.9 million, which is 8% less compared to the same period last year but net result of the company improved by 18%, which amounted to EUR 5.0 million loss.

During the first six months, Estonian Air carried 260 thousand passengers, of which 251 thousand on regular flights. This is 8% less than in the same period last year but less than the decrease in roundtrips (10%) in the same period 2013.

“The result of the second quarter is on the same level as in the same period last year, but nevertheless we expected to see more positive results,” said Jan Palmér, CEO of Estonian Air. “During the second quarter Estonian Air has continued to perform in line with the restructuring plan, but in addition we must now intensify measures in response to harsher market. Competition in Tallinn airport has become tougher as new carriers have entered the market and we have been influenced by continuing uncertain situation in Ukraine resulting in lower passenger volumes on Kiev route and lower transit passengers volumes flying from Europe to Russia,” continued Palmér.

The pressure on airlines’ yield has increased in the whole Europe, forcing airlines to adapt to the changing market conditions. “In the first half of the year, the total number of passengers fell slightly behind our forecast. This is mainly due to less number of operated flights compared to last year, which is due to demanding market situation. However, in June and July we have seen the passenger volumes coming back. Positively surprising high demand for our summer offers and two more summer destinations helped us to turn the number of passengers into growth again,” added Palmer.

In addition to direct flights, Estonian Air is providing more than 280 destinations around the world together with partner airlines with minimum connecting time. For instance, Stockholm, Copenhagen and Amsterdam airports act as important hubs for connecting flights around the whole world.

Estonian Air, Estonia’s national carrier, is the biggest operator at Tallinn Airport. The airline flies regular routes to Stockholm, Copenhagen, Amsterdam, Brussels, Oslo, Moscow, Munich, St Petersburg, Kiev, Vilnius, Trondheim and Bromma. In addition, from May to September, Estonian Air will fly to Nice and Split, from June to August to Paris and from June to 1st of November to Berlin. From December 2014 to March 2015, Estonian Air will add seasonal flights to Munich.

Copyright Photo: OSDU/AirlinersGallery.com. Embraer ERJ 170-100LR ES-AEA (msn 17000093) arrives in Moscow (Sheremetyevo).

Estonian Air: AG Slide Show