10. 5. 2005 - CSA increased its profit in 2004 despite adverse developments in fuel prices
Prague, 10. May 2005
According to the results of the final audit Czech airlines showed a net profit of 324.2 million CZK in 2004, which is more than four times higher than in 2003. According to international accounting standards, the profit is 22.9 million USD. The total economic result is better than the originally estimated profit, especially because of higher earnings from abroad.
“The International Air Transport Association IATA evaluated CSA as the most dynamically growing air carrier of 2004. Despite the very turbulent environment of air transport, we managed to increase our profit and operational results and thanks to the modernisation of our fleet, we have become a highly competitive airline on the European market,” says Jaroslav Tvrdík, President and Chairman of the Board of CSA.
The total operational income created by CSA in 2004 showed an interim increase of 16 % to reach 22.3 billion CZK. The plan was exceeded by 5.2 %. Almost 81 % of operational income was created by transportation income from regular and charter transport. The remaining income came from the sale of goods (Duty Free shops and on-board sales) and other non-transport activities such as aircraft maintenance, traveller check-in and catering. The maintenance of aircraft for other airlines showed especially good results, which confirmed that the management had made the correct decision in opting to support this type of activity in the future as another profitable avenue for the company.
The operational costs of the company were 21.6 billion CZK, which is 16.2 % more than in 2003. The greatest impact on this increase in costs was caused by fuel prices, which exceeded the plan by almost 900 million CZK. The reason for these disproportionately high fuel costs was the extreme growth in global crude oil prices.