Brighter skies ahead for Adria
After two tough years, Adria Airways is on the road to recovery as its losses narrow and passenger numbers improve. In the first seven months of the year, the Slovenian national carrier welcomed 573.488 passengers on board its aircraft, similar to last year’s result. However, Adria operated 7% fewer flights than the same period last year. The average cabin load factor stood at 71.8%, an improvement of almost six points compared to 2012. More importantly, the Slovenian carrier recorded a loss of 1.4 million euros in the first seven months, down from last year’s 7.7 million. As a result, Adria plans to end 2013 in positive territory for the first time in six years. “Thanks to positive business from May onwards, results are improving and we expect to end the financial year with a positive result, in line with our plans and forecasts”, the airline said in a statement.
Adria hopes its finances will be boosted by a major assets sale it plans to finalise next month in order to avoid taking out a bridging loan for the winter season. The Slovenian carrier is selling off its maintenance hangar at Ljubljana Airport, its apron, workshops, flight academy, simulator and office building. The tender deadline for the submission of offers for the mentioned property has been set for August 30. The winning bids will be selected based on the quoted price.
Meanwhile, Adria has finalised the sale of one of its Bombardier CRJ 200 aircraft which has been grounded at Ljubljana Airport for some time. The jet has been sold to SCAT Airlines from Kazakhstan. The aircraft, registered S5-AAJ, is eight years old. The deal was arranged by Cobalt Aviation. As a result of its improving finances, Adria plans to launch flights to Warsaw, Prague and London next summer and at the same time inaugurate services from Tirana to Frankfurt. The Slovenian carrier also plans to shift its business to a hybrid low cost - full fare model in the near future, regardless of its privatisation process.