4. 8. 2004 - Czech Airlines showed a profit of 270.4 million CZK in the first 6 months of 2004

Prague, 4 August 2004

Czech Airlines achieved a profit of 270.4 million CZK in the first six months of 2004 representing a doubling of growth when compared to the previous year when the company showed a loss of 292.5 mil CZK.

"The expansion of the fleet on a strongly competitive market, along with our projects focused on cost reduction and a change in marketing and pricing policy have reaped results in the form of the best economic results of the company in the last 10 years,“ said Jaroslav Tvrdík, President and Chairman of the CSA Board of Directors.

Seven new destinations, growth in the number of transported passengers, a higher seat load factor and higher non-transport revenues were among the other factors resulting in the excellent economic results.

Year-on-year, the CSA fleet grew by 8 airplanes (5 Boeing 737’s for medium-haul flights, 2 ATR 42’s for short-haul flights, and 1 long-haul Airbus A310) – from 35 to 43 airplanes.  Furthermore, routes to 7 new destinations were begun – Samara, Yekaterinburg, Baku, Krakow, Dortmund, Luxemburg, and Marseille.

CSA transported a record number of 1.95 million passengers in the first six months of 2004, which represents a year-on-year growth of 27%.  With almost 2 million transported passengers, CSA is the largest carrier among the new EU member countries, and according to the analyses of the Association of European Airlines (AEA) the 11th largest national carrier among all EU members.

In the January to June period, the seat load factor showed a year-on-year growth of 1.7%, at 70%.

Non-transport revenues also had a share in the improvement of the economic results – aircraft maintenance for other airlines (among CSA’s clients are, for example, Air Berlin, Lufthansa Technik, and Transavia), as well as catering and handling services, and Duty Free sales, both in-flight and at airport shops.

In 2004, CSA changed its marketing and pricing policy and now offers prices from 2 990 CZK while at the same time improving the quality of services.  Also, CSA has not increased prices in regards to higher oil prices on world markets, as many other airlines have done.

“We appreciate the loyalty of our customers and do not wish to change a winning policy, but we are constantly analysing the dramatic development in oil prices and the situation in the industry on a daily basis,“  adds Jaroslav Tvrdík.

The rising price of oil, having an adverse effect on the entire industry, will be the key factor for further development of the annual economic indicators of the company. 

 

Jitka Novotna
Spokesperson CSA