Estonian carrier’s loss in 2012 is €35.8mn
Estonian Air’s problematic loss-making continues. Its revenues totalled €91.5 million in 2012, resulting in a net operational loss of €35.8 million. Together with one-off costs such as impairment on aircraft, the net loss for the year was €49.2 million. The airline added that “costs associated with the attempt to grow the airline and expand the route network amounted to approximately €26 million”.
Jan Palmér, the carrier’s Danish chief executive, said: “Late last year, the supervisory council of the company decided to change Estonian Air’s business model from growth oriented carrier to a regional point-to-point airline. While the airline carried a record number of passengers in 2012, low yields from the transfer traffic did not support the airline’s bottom line.”
He continued: “Although the airline brought four new jet aircraft into service by the start of the summer season, overall the fleet transition proved to be more costly than planned.”
Since the end of January, Estonian Air has been working according to a restructuring plan to become a cost-efficient regional carrier providing flights to destinations that are important for Estonia, where demand is constantly high. Ten core destinations are Stockholm, Copenhagen, Amsterdam, Brussels, Oslo, Moscow, St Petersburg, Kiev, Vilnius and Trondheim.