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| 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 |
| Croatia Airlines | 921.000 |
| Adria Airways | 900.000 |
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 |
Comments
As for JP and OU, I am in shock that the difference in passenger numbers is that small. My prediction that the gap will be even further reduced with all the new flights announced by Adria.
You're talking 800,000 passenger difference per year between Adria and OU.
http://www.index.hr/vijesti/clanak/od-1-svibnja-jednom-tjedno-direktna-avionska-veza-s-kinom/812071.aspx
Yes, I am very well aware of the 700.000 difference but at the same time the Slovenian market is dwarfed when compared to the Croatian one.
But kudos to Adria for thinking outside the box.
A good morning laugh, that's for sure.
http://www.belex.rs/trgovanje/hartija/dnevni/AERO
im glad for Adria , finally !
Мене много више брине што се моје паре бацају у друге црне рупе попут Железаре или ЖТП-а.
http://centreforaviation.com/analysis/europes-airlines-underachieve-in-profit-margins-but-lccs-typically-perform-better-than-fscs-217527
Ryanair at #1, Wizz Air at #2.
Nemjee you can sign yourself.
Plus minus ooohhh we have profit.
To much master degrees in economy over there.
Bu just on paper ex Yugo style.
So no serious buyer for Adria.
Leased airplanes (they don't own them) -yes it's a practice-
but Adria has no LIQUID money to pay the hotel for pax stranded at the airport (even when it's the pax right to have it paid), Adria has no money for re-fueling (out of home bases), Adria has no money to pay own workers salary till the very last day they must do it.
Bullshit Airline
just PR is good when on work
OU has close to 100% of the domestic market but I understand what you are trying to say and agree that OU could do more especially in the winter months. To be a successful company one has to create growth. It is very hard to rely just on organic growth which OU has done throughout because this type of growth is less secure.
So, you concur that these are phony profits then.
It costs a dollar to produce a nail and you sell it for 95 cents. You lose 5 cents on each nail, but the central government covers 10% of your production costs, so you're profitable. Sure! That's until the government decides to switch off the life support machine. Thanks but I won't be investing. Keep all of your phony profits.
Huh? Just because I post in Cyrillic doesn't mean every Cyrillic anonymous post has to be mine. Unlike you I have no problem posting using my nickname.
Cheers.
Notice LOT has been sending the E170 to Zagreb. Also at least 1 day last week there were 2 flights operated in one day.
Must be doing really well!
LOT E170 is configured for 70 pax and Q400 for 78pax, unless you've mistaken E175, E175 has 82 seats, 4 more seats than their Q400s
May-October should be interesting for LOT on Zagreb - Warsaw route, I predict they'll be sending E175s on a daily basis and E195s on busier days.
Would BEG/INI - BTS work for Wizz or Ryanair ? Apart from O&D passengers, Ryanair flies to many destinations in Europe as well
LYKV -LCY
Domestic market powered by the State(PSO)!
Equity sale!(A320,engines,land...),etc,etc and at the end 920.000 kn profit!!!!!
Real big success!!!!!!
Congrats!
Steta sto ADR zapostavlja LJU.
INN-NS
INN-NS
INN-NS
INN-NS
Have just noticed in Amadeus that QR increases ZAG - DOH to daily service from end of JUN.
FZ also increases DXB to 4 weekly from next winter schedule (so seems not only during holidays).
4% more sceduled flights and 19% less charter flights; overall 2% more flights than last March
13% more scheduled pax (71725) and 20% more charter pax; overall 14% more pax than last March
55 pax per scheduled flight (up 8%) and 66 pax per charter flight (up 48%)
Over all in first 3 months of 2015 Adria transfered 8% more pax on the same number of flights operated than last year same period.
Only one embarrassing himself here is our regular ASL hater poster, refusing to face the facts. Conspiracy theorists have been soundly defeated here with plethora of evidence on numerous occasions. Must be tragic living in your world of hurt.
My bad.
Also Air Croatia 3 times per week Zagreb-Nurnberg!
OU didn't sell any land or engines yet, land was an option if no solution could have been found in 2012 to OU's financial wows, OU manged to solve financial deal with EU imposed restrictions which end at the end in April 2016.
Engines will be sold this year, for $10-15 million if two engines are sold, of single engine around $5.5-7.5 million, OU has 6 spare engines, 2 were deemed surplus to the requirement and are being sold. A deal with Airbus also includes a pair of brand new engines on top of 8 that are being bought as part of airbus Deal, what OU is doing is selling older engines and replacing them with brand new in 20167, a smart move if you ask me.
OU plans to sell its current head office in Buzin, no idea how much that land and offices are worth, but they hope to get around $3 million for that. money from these proceeds will allow OU to build a brand new smaller head office at the Airport near bran new Terminal, on land which is owned by OU btw.
Public service obligation or PSOs you're referring to aren't really cash cows for OU in fact if you look at OU's balance sheet this is where OU is bleeding money heavily.
First four months Jan to April, OU accumulates all its losses, mainly to PSOs , in 2014 these stood at whooping 200 million kuna for first 4 months, or 50 million kuna per month, reason why some domestic services have been auctioned off to other operators in Croatia with smaller aircraft.
OU made very small operating profit based on sales, this yea however OU plans to sell two engines which should generate around $10-12 million, which again will be used to pay for four brand new Airbus A319 that are joining the fleet in 2017.
All this can be found if you look at OU's own website and look at their balance sheet.
http://www.croatiaairlines.com/hr/O-nama/Financijske-informacije/Izvjesca-o-poslovanju
OU's strategy is to reduce workforce by the end of 2015 by another 60 staff, saving the airline another $1.5 million in pays and benefits, and maintain workforce at 850 level.
longer term plans will see a fleet of 20 aircraft, something this blog has posted about and slightly larger workforce of around 1000, but these are medium to long term plans.
Possible new route starting from June: Zagreb-Podgorica
INN-NS
When talking domestic market I am referring to flights within Croatia for example Zagreb - Split or Zagreb Dubrovnik. The only competition they have here are the ECA Twin Otters and Trade Airs EMB 120.
Maybe it is not the same web page with mentioned balance sheet!!!??????!!!
We know the role of PR,and,of corse,difference between pr and the truth!