Estonian Air improved considerably financial results the second quarter in a row

28-Oct-2013

In the third quarter Estonian Air increased its revenue by 1% compared to the previous quarter to EUR 19.7 million, and the net loss (related to financial costs) decreased by 69% to 0.3 million. In its core business before restructuring costs, the airline posted positive results every month during the quarter and posted a monthly net profit in September.

Company's earnings before interest and taxes were 1.2 million euros.

Estonian Air started to implement extensive restructuring process in the beginning of 2013. As a result of this the airline has posted positive results every month since April in its core business before restructuring costs. Estonian Air has been on sustainability track for two consecutive quarters.

In September, Estonian Air's non-core business costs included 300 thousand EUR interest payment on the state rescue loan and about 200 thousand EUR as redelivery cost of the Boeing 737. Nevertheless, Estonian Air ended the month with net profit.

"Estonian Air has reached sustainability in its core business as a result of resized operations to an optimal network. The results of last two quarters indicate that our reconstruction plan is working," said Jan Palmér, the CEO of Estonian Air. "

The bottom-line loss of EUR 0.3 million for the third quarter was less than the 0.9 million loss of the second quarter. Overall, the number of round trips dropped compared to the second quarter by 4% to 1,318.

"In the light of ongoing restructuring costs, we have already reached monthly profits in June and September. Comparing the outcome of this year's second and third quarter with the same period from last year, we have reduced the net loss considerably from 11.6 to 1.2 million," added Palmér.

In the first nine months of 2013, the revenue was 55.4 million euros (21% less than in 2012). The net loss for the nine months was 6.1 million euros which is 66% less compared to the same period last year.

During nine months, Estonian Air has carried 428 thousand passengers, 38% less than last year, which is less than the decrease in round trips (45%) in the same period 2012. The number of employees dropped from 301 to 168.

In June, the Republic of Estonia submitted the Restructuring Plan for the airline for approval to the European Commission Directorate General of Competition. The company's performance year-to-date is in line with the Restructuring Plan.

A decision is expected at some point by the end of the first half of 2014.

In July, the airline redelivered its last remaining Boeing 737 to its Lessor, and ended the quarter with a fleet of seven regional jet aircraft: three Bombardier CRJ900s and four Embraer 170s.

The mission of Estonian Air is to provide Estonia with double daily connections to destinations of strategic importance. A small country on the periphery of Europe depends on such connections, and Estonian Air is committed to providing these services.

Estonian Air, Estonia's national carrier, is the biggest operator at Tallinn Airport. Estonian Air flies to Stockholm, Copenhagen, Amsterdam, Brussels, Oslo, Moscow, St Petersburg, Kiev, Vilnius and Trondheim.

In addition, from December until the end of March, Estonian Air will fly between Tallinn and Munich, from May to September, Estonian Air will fly between Tallinn and Nice, and from June to August to Paris.