newstodate.aero
Oct 29, 2013 (newstodate): Estonia's national carrier Estonian Air is reporting sound progress on its way towards profitability in 2014.
In Q3, 2013, Estonian Air increased its revenue by one percent, y-o-y, and the net loss related to financial costs decreased by 69 percent.
In its core business before restructuring costs, the airline posted positive results every month during the quarter, posting a monthly net profit in September.
The carrier is amidst a thorough restructuring process including cuts in staff, fleet, network and administration and has turned around the carrier to focus solely on providing Estonia with double daily point-to-point connections to destinations of strategic importance.
In July 2013, the airline redelivered its last remaining Boeing 737 to its Lessor, ending Q3 with a fleet of three Bombardier CRJ900 and four Embraer 170 aircraft.
Looming on the horizon is still the outcome of an investigation by the EU Commission to verify if a state grant in December for a 8.3 mio euro loan to Estonian Air falls within acceptable limits.
Should the verdict of the Commission require the carrier to repay the state aid, Estonian Air would most probably face bankruptcy despite ongoing and successful efforts to turn the carrier around.
If the verdict supports Estonian Air, the carrier would be in shape for the state to sell part of its stake to another party.
In Q3, 2013, Estonian Air increased its revenue by one percent, y-o-y, and the net loss related to financial costs decreased by 69 percent.
In its core business before restructuring costs, the airline posted positive results every month during the quarter, posting a monthly net profit in September.
The carrier is amidst a thorough restructuring process including cuts in staff, fleet, network and administration and has turned around the carrier to focus solely on providing Estonia with double daily point-to-point connections to destinations of strategic importance.
In July 2013, the airline redelivered its last remaining Boeing 737 to its Lessor, ending Q3 with a fleet of three Bombardier CRJ900 and four Embraer 170 aircraft.
Looming on the horizon is still the outcome of an investigation by the EU Commission to verify if a state grant in December for a 8.3 mio euro loan to Estonian Air falls within acceptable limits.
Should the verdict of the Commission require the carrier to repay the state aid, Estonian Air would most probably face bankruptcy despite ongoing and successful efforts to turn the carrier around.
If the verdict supports Estonian Air, the carrier would be in shape for the state to sell part of its stake to another party.