Airport, Estonia, EU – Baltic States, Financial Services, Transport

The results are in line with the restructuring plan which is reflected by the positive operating result of 7.4 million euros, the company said.

Estonian Air’s core business turned profitable in the second and third quarter, and in 2013 the airline managed to post its first positive monthly result in over three years. For the full year, the airline’s operating loss amounted to 4.2 million euros.

In 2013, the sales revenue of Estonian Air was 72.3 million euros. The company’s gross profit was 7.4 million euros and net loss 8.1 million euros.

As compared to 2012, the sales revenue was by 21% lower. The gross profit increased by 147% and net loss was reduced by 83%. The loss of the airline in 2012 was 49.2 million euros.

"Estonian Air is in a much better position today than it was on 1 November 2012, when I took over as Chairman of the Management Board and CEO of Estonian Air. My mandate was to restructure the airline to sustainable operations. The airline has taken all the planned steps to reach that goal," said Jan Palmér, the CEO of Estonian Air.

"The European Commission’s investigations into prior instances of state aid as well as the airline’s Restructuring Plan are ongoing. Together with our shareholder representatives, we are working to ensure that the decision expected in the near-term future will be positive," added Palmér.

According to Palmér, Estonian Air has downsized its operations to develop the airline into an efficient regional player focused on the Nordic and emerging nearest neighbouring markets. “We have reduced the network to ten core destinations which is served with five aircraft, and turned the service concept to a regional model during the restructuring process," explained Palmér.

The total number of Estonian Air’s passengers in 2013 was 551,169, which is 37.9% less than in 2012. With the excess aircraft the airline increased its number of charter flights almost five times from 44 to 209. In addition, the airline operated flights from Vilnius to Amsterdam, Brussels and Berlin on behalf of Air Lituanica during the period from 30 June to 27 November.

Flight regularity for all flights, as measured by actual versus scheduled flights, was 99.3% compared to 98.4% in 2012, and punctuality (15-minute per arrival) was 89.2% compared to 82.3% in 2012.

In addition to regular flights, the company also flew charter flights to 52 destinations in Europe, and the Middle East.

When in 2013 the main focus was on restructuring and turning over the company, then in 2014 ensuring balanced and sustainable development and elaborating services. Estonian Air is aiming to provide Estonia with reliable and regular double daily connections to destinations of strategic importance and of substantial demand, the company said.