Estonian Air posts worse financial results than expected (3)
The state-owned national carrier Estonian Air reported 6.4 million euros in losses in 2014, more than double the predicted 3 million euros.
The 3-million figure was written into the restructuring plan which was submitted to the European Commission for approval and which allowed the government to hand the airline a huge loan. The legality of the loan is still up in the air as the European Commission is yet to rule whether the loan constituted illegal state aid.
CEO Jan Palmer said the Ukraine crises had an effect on the results as the airline's volumes on eastward flights decreased significantly.
Another factor was increased competition.
The company recently set up a subsidiary to offer flight capacity to other airlines. It also announced a number of seasonal routes which began two weeks ago.