Posted on: 27 August 2015 by Ross McSweeny
Estonian Air has recorded its first profitable summer months since 2010 – earning approximately 200,000 euros – after carrying 62,559 passengers in June and 65,643 passengers in July, marking a 14% and 18% respective increase in comparison to June and July in 2014.
During the first seven months of 2015, Estonian Air carried 341,591 passengers, of which 330,180 were on regular flights. This means year-on-year the total number of passengers has increased 8.5%, with passengers carried on regular flights growing by 9.1%.
The airline has increased its sales and market share although the aviation market as a whole is in decline and the competition is increasing. In the first seven months of 2015 the carrier operated 7,040 regular and charter flights, which is 13% more than during the same period last year.
The airline currently operates a total of six aircraft including three Embraer 170s and three Bombardier CRJ900s. In September two Bombardier CRJ700 aircraft will be added to the fleet.
“Profitable summer months indicate that the restructuring plan has helped us to establish a solid foundation for long-term sustainability. Active sales in Estonia and destination markets and capacity providing for other airlines have contributed to the positive outcome. In addition, a wider choice of flight destinations and improved load factor shows more effective usage of our assets,” explained Indrek Randveer, chief commercial officer, Estonian Air.
“We will continue to develop our business and we realise that in order to keep sustainable profit and serving direct flights from Tallinn we need to find service opportunities from Scandinavia and Europe as well,” Randveer continued. “For instance, operating SAS and Austrian Airlines flights as a capacity provider and serving Swedish domestic flights starting from October where our business risks are hedged.
“Approaching autumn and winter time will bring a low flight season, and we are planning to have losses in 2015. Nevertheless, our results so far have been better than budgeted and next year we are aiming to reach the break-even.”