Adria ends two year passenger losing streak
Adria Airways handled over one million passengers in 2013 and is believed to have recorded a one million euro loss, significantly down on losses in previous years. The airline returned to serving one million passengers after its numbers dipped below the mark in 2012 for the first time since 2005. Last year Adria welcomed 1.026.839 passengers on board, an increase of 4% compared to the year before when it handled 987.279 travellers. The airline’s passenger numbers are still down compared to 2011 and its record year of 2008 when it saw 1.302.172 passengers. The improvement comes despite the Slovenian carrier operating 19.509 flights, down 7% compared to 2012.
During 2013 Adria’s average cabin load factor stood at 71.8%, up six points on the year before. Its best performing routes were Star Alliance hubs Frankfurt, Zurich and Munich. While the airline’s financial report is yet to be published it is believed the carrier recorded a loss of one million euros during last year, despite initially posting a 700.000 euro profit for the first nine months. While Adria was hoping to break even in 2013, its financial performance has significantly improved compared to 2012 when it saw its losses total almost eleven million euros.
The positive results will be welcomed by the government which is looking to sell a majority stake in the airline. Efforts to find a strategic partner for Adria have been ongoing, and the company has also been included on the government’s priority privatisation list. However, it is unlikely any privatisation process will begin before the European Commission rules whether Adria received state aid contrary to European Union competition laws. The Commission is still to make a decision based on the investigation it launched in late 2012. Only this week the European Commission launched state aid investigations against Cyprus Airways and Estonian Air. Yesterday, the International Monetary Fund (IMF) increased pressure on Slovenia to reduce its budget deficit by speeding up the sale of state owned companies, amongst which is Adria.