|Adria Airways posts 2014 profit|
Adria Airways recorded a pre-tax profit of 900.000 euros last year, making it the third national carrier in the former Yugoslavia to end 2014 in the black. It comes following a net loss of 3.1 million the year before and marks its first annual net profit since 2007. In a statement, the Slovenian carrier said its operating profit stood at three million euros while revenues fell 1% compared to 2013. Lower fuel prices, passenger growth and lower costs per passenger assisted with its improved financial performance last year, while a sharp decline in revenue on the Russian market had the greatest impact on its results. The airline also managed to reduce its debt by 22.4 million euros but it did not specify its remaining debt. Only last week, Bank of America Merrill Lynch purchased 6.3 million euros worth of Adria’s debt for an undisclosed sum.
Despite the number of flights declining from 19.509 in 2013 to 19.123 last year, the Slovenian carrier positioned itself as the third busiest airline in the former Yugoslavia, handling 1.112.857 passengers in 2014, up 8% on the year before. The number of operated charters grew by 13%. Recently, Adria’s CEO, Mark Anžur, said 2014’s performance was “somewhat disappointing”. “We planned for better results. In Europe, revenue per passenger fell by 7% in 2014, which is huge”, the CEO said. During the winter, Adria took out a bridging loan in order to stay afloat and concluded a sale and leaseback arrangement for two of its Bombardier CRJ900 aircraft in order to boost liquidity.
|Airline||Net profit €|
|Air Serbia||2.7 million|
In 2015 the airline plans to increase revenue by 13% with the recent opening of a new base in Lodz and the launch of new routes from Ljubljana and Tirana. In addition, Adria is also eyeing improved cabin utilisation during the year. The airline estimates its passenger numbers will grow by 20% this year. Mr. Anžur recently said, “Increasing passenger numbers is one of the development focuses contained in our business strategy until 2020. To ensure that as many passengers as possible select Adria as their airline of choice, we are adjusting our prices to suit the broadest possible range of customers, as we endeavour to satisfy both business travellers and those who are looking for the cheapest fares”. Under the strategy, Adria hopes to carry two million passengers per year by 2020.
The encouraging financial trends come during the airline’s ongoing privatisation process. Recently, the state-run Slovenian Sovereign Holding (SSH), which is coordinating Adria Airways’ privatisation, selected Dutch-based consulting firm KPMG as a financial advisor for the sale of 91.58% of the carrier. During Adria’s last privatisation attempt in 2012, a total of ten parties submitted non binding offers. Up until now there has been no official word on who made these bids.
|Airline||PAX (million)||Change (%)|
|Air Serbia||2.3||▲ 68|
|Croatia Airlines||1.8||▲ 2|
|Adria Airways||1.1||▲ 8|
|Montenegro Airlines||557.000||▼ 5|
|B&H Airlines||35.600||▲ 17|