Posted on: 28 October 2013 by Mark Howells
airBaltic has achieved a net profit of €13.2 million in the third quarter of 2013, surpassing its original plans and turning around last year’s loss of €26.72 million into a net profit of €0.72 million in the nine months from January to the end of September 2013.
“We have restructured airBaltic through cost control, capacity management and efficiency gains,” explained Martin Gauss, chief executive officer of airBaltic. “It makes our airBaltic ReShape turnaround plan a success story.
“Becoming profitable was a painful exercise, requiring a scrupulous and careful re-evaluation of every aspect of the business”, Gauss added. “And, yes, it required concessions as well. We had to end operations on several routes. We also reduced our total amount of aircraft from 34 to 25. Again, this was done as part of our fundamental fleet modernisation programme. This summer, we also improved our flight schedules and achieved substantial efficiency gains by flying each of our aircraft about 15% more. From a business perspective, aeroplanes are “factories” with wings, and better aircraft utilisation means less time on the ground and lower unit costs, which we can pass on to our customers.”
airBaltic achieved unit revenue improvements (revenue per available seat kilometre) of 4% over the Jan-Sep 2013 period, compared with the same period in 2012, and generated revenues of €255.96 million, thus achieving a 2% improvement compared with a year ago, despite capacity reductions.