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Estonian Air reports EUR14.9 million loss in 1H2012

10-Aug-2012 1:34 PM

Estonian Air reported (09-Aug-2012) a loss of EUR14.9 million in the first six months of 2012 despite a 24% year-on-year increase in revenue to EUR43.9 million. Estonian Air CEO Tero Taskila attributed the result to a 32% increase in fuel expenditure, one-off costs of the fleet exchange, weak euro and economic uncertainty. The carrier transported 423,581 passengers, up 38%, with load factor increase 8 ppts to 70% while revenue per ASK increased 19% in 1H2012. Estonian Air also increased its market share at Tallinn Airport from 30% to 44% following the launch of nine new services. [more - original PR]

Estonian Air: “In spring we conducted a strong optimization of variable costs and in July we decreased the administration staff by 15%. We hope to sign a new collective agreement with our pilot and cabin crew unions to replace the expired agreements, which were officially terminated today. The new collective agreement should be based on changed market environment, and based on EU and Estonian regulations. We aim to reach 15% efficiency in crew utilization during the negotiations. We have also adjusted our schedule for improved profitability. The effect of the listed activities will occur already in the end of this year,” Tero Taskila, CEO. Source: Company statement, 09-Aug-2012.