Estonian Air Posts Worse Than Expected 6 Month Results (6)
The national carrier reported a 5-million-euro loss in the first half of 2014. Although the loss was 18 percent smaller than during the same period last year, CEO Jan Palmer said the figures are below expectations.
The state-owned company recorded a 32.9 million euro turnover, down 8 percent compared to the first half of 2013.
“The result of the second quarter is on the same level as in the same period last year, but nevertheless we expected to see more positive results,” Palmer said in a press release today. “During the second quarter Estonian Air has continued to perform in line with the restructuring plan, but in addition we must now intensify measures in response to harsher market. Competition in Tallinn Airport has become tougher as new carriers have entered the market and we have been influenced by continuing uncertain situation in Ukraine resulting in lower passenger volumes on Kiev route and lower transit passengers volumes flying from Europe to Russia.”
Palmer said passenger numbers were slightly below what was forecast, adding that the figures for June and July were more positive. A total of 260,000 people flew with Estonian Air from January to the end of June.