Two years ahead of schedule, Nordica to end year in profit for first time ({{commentsTotal}})

Nordica jets at Tallinn Airport.
Nordica jets at Tallinn Airport. Source: (Erik Prozes/Postimees/Scanpix)

Nordica expects to end the current year in profit, two years sooner than the business expected to break even.

"At the same time, 2017 was a special year, because [these results] included factors which we cannot factor in next year," Nordica CEO Jaan Tamm said.

The company has performed better than expected both on the domestic market as well as in offering subcontracted flights abroad.

"The Estonian presidency of the Council of the EU and the weather boosted the popularity of summer flights," CFO Ahto Pärl said. "We remain in good standing with regard to the dollar and the cost of fuel, and Estonia's economic growth has likewise helped boost growth on the aviation market."

Nordica's export of services, i.e. offering subcontrated flights to other airlines, however, has gone much better than expected.

"The export of services has quadrupled," Pärl noted. "This has put the business under strain, which affected the domestic market as well, where we had issues with the regularity and operation of flights."

According to Tamm, the summer season was very stressful and difficult, but was now over either way. "[During the EU presidency], schedules were as dense as possible, and I apologize for the cancellation of flights," he added.

Nordica will likely end next year with a loss again.

The Estonian national airline has repeatedly stressed that flights departing from Tallinn alone are not enough to keep the company afloat, as the Estonian market is too small.

Nordica currently offers subcontracted flights to LOT Polish Airlines with four planes, to SAS with four planes, and to the governments of the Netherlands and Sweden with one plane.

Editor: Aili Vahtla



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