12. 11. 2008 - In the First Three Quarters, Czech Airlines Reported a Profit of USD 22.051 Million According to International Standards
Prague, 12 November 2008
According to International Financial Reporting Standards (IFRS), Czech Airlines more than doubled its profit in the first three quarters to USD 22.051 million (profit before tax). This is a year-on-year increase of USD 12.207 million at a time when the entire industry is burdened by high fuel prices and the economic crisis, and when many airlines have reported either losses or a significant deterioration in their financial situation. Operationally, Czech Airlines has posted a profit of USD 39.152 million for the first three quarters (operating profit), which constitutes a year-on-year increase of more than one third.
“Thanks to the positive results of our three-year OK 2006-2008 Strategy, we are in very good financial shape compared to comparable competitors. In spite of the record oil prices that significantly burdened our finances, and in spite of the slow-down in the global economy, we expect a positive financial result at the end of the year,” said Czech Airlines’ President, Radomír Lašák.
In the first three quarters, income from air carriage according to IFRS was up year-on-year by USD 217.584 million, to USD 1.089 billion, primarily due to the greater number of passengers carried and better fleet utilisation. Operating income also increased due to lower costs, which are growing more slowly than income, and which managed to offset the increase in the price of fuel and increased financial expenses (including exchange rate losses) on hedging, due to the crisis on financial markets.
Overall revenue was up by USD 248 million, to USD 1.125 billion. The year-on-year growth is also significantly influenced by the development of currency exchange rates.
“Our new management team has successfully managed to restructure Czech Airlines over the last three years. Consequently, our internal finances are very sound and our market position is very strong, relative to the current situation in the airline business. This is of even greater importance, given that tough times are undoubtedly going to come in the next few months, and we are prepared for them,” added Radomír Lašák.
In the first three quarters of this year, Czech Airlines carried over 4.4 million passengers. That constitutes a 4.9 percent increase compared to the same period last year. In the first nine months of 2008, Czech Airlines aircraft also carried over 15,000 tonnes of cargo and post. Overall, Czech Airlines operated nearly 32,000 flights. In September alone, the Airline carried nearly 565,000 passengers. Whereas the number of Czech Airlines passengers increased by nearly five percent in the last three quarters, the average increase in the number of passengers carried by European airlines increased by a mere 0.1 percent, as reported by AEA. Nevertheless, given the market situation, Czech Airlines is also expecting the growth of the number of its passengers to level off in the future.
Czech Airlines Press Spokesperson