Airline blames bigger pre-tax loss in 2011 on 40% fuel-costs rise
Czech Airlines posted a bigger pre-tax loss in 2011, tripling its deficit to €9.2 million. The airline blames a 40% rise in fuel costs and previously accumulated financial leasing obligations for the poor results. Revenues in 2011 fell to €660 million, although costs also fell during the year.
Czech Airlines is midway through a three-year restructuring plan. Some of its subsidiaries have been transferred to a holding company, while personnel costs have been slashed by almost a third and aircraft movements have been cut by nearly 20%. Fleet size is “returning to a state that corresponds to the transport network and market potential of a small local market,” according to the airline’s chairman Philippe Moreels.