“airBaltic” will lose almost 50 million euros in 9 months, but Gauss will be able to apply for additional salary

Table of Contents

• 1 The third quarter results are encouraging
• 2 How much did the company earn from leasing the planes?
• 3 “airBaltic” has expanded its aircraft fleet
• 4 What specific challenges did airBaltic face during the nine-month period that contributed to its financial performance, and what strategies were implemented ⁤to address‍ these challenges effectively? ⁢

This year, the Latvian national airline “airBaltic” made a loss of EUR 48.503 million in nine months of this year, compared to the profit in the corresponding period a year earlier, said the president and CEO of “airBaltic” Martins Gauss in a call to investors of “AirBaltic”. At the same time, the proposed changes to the law provide that he will be able to apply for a salary, unlike many other people who work in the boards and councils of companies by the state.

Martins Gauss received 828,942 euros in salary last year, according to his official income declaration for 2023 submitted to the State Revenue Service. This year, most likely, his salary will be about the same, because he stressed that his salary has not changed for three years during his visit to the LTV program “One on One”. However, next year M. Gauss will likely be able to claim an additional salary of more than 20,000 euros, compared to many other managers in state and local government companies, whose salary will be frozen for two years in line with the planned changes to local government. law The proposed changes in the law provide that the salary will not be frozen for those who work on the boards and councils of the state company, whose salary was not increased this year and last year. It is this reservation that allows M. Gaus to receive an additional salary.

The third quarter results are encouraging

The profit of “airBaltic” in the third quarter is 40.3 million euros. Also, the highest ever income in the third quarter was achieved – 236 million euros, which is an increase of 8% year on year. Good performance indicators are ensured by the maximum number of seats, increase in the number of flights, operational efficiency and a successful strategy for aircraft rental, informs the corporate communication department about “AirBaltic”.

In the first nine months of 2024, “AirBaltic” carried 3.8 million passengers, which is 11% more than in the corresponding period in 2023. Seat occupancy in the third quarter was 87.8%, which is six points percent more than a year before. “airBaltic” increased the number of passengers carried by 12% in the third quarter, and the number of flights increased by 5% (not including ACMI flights or charters).

“airBaltic” earned the highest revenue in the nine months of this year – 575.3 million euros, which is an increase of 13% year on year. Also, the highest adjusted EBITDAR profit ever was achieved – 158.1 million euros in nine months, which is an increase of 21% compared to the year.

“Our record high results in the third quarter and the first nine months of 2024 show the effectiveness of the “AirBaltic” strategy and our focus on basic business excellence, expanding the route network, a as well as improving the quality of customer service.

With 140 routes, including 22 additions by the end of this year, and agreements with 24 collaborative airline partners, we have greatly increased the connection options for our passengers, if we will compare with last year,” said M. Gauss on the results.

How much did the company earn from leasing the planes?

In the third quarter of 2024, up to 17 airBaltic aircraft were leased to Lufthansa Group airlines based on the ACMI agreement, in line with the airline’s strategy to develop outbound ACMI services. Thus, ACMI’s revenue share reached 22% of total revenue for the third quarter of 2024, according to the report.

At the same time, the “AirBaltic” report explains that in the third quarter of 2024, nine aircraft were taken out of service due to engine problems, which also led to an increase in ACMI and engine rental fees. At the same time, the company received much more financial support from Pratt&Whitney compared to the previous two quarters to combat these disturbances.

“airBaltic” has expanded its aircraft fleet

“airBaltic” also mentions the expansion of its fleet as an important success. In August, the airline exercised its right to buy 10 additional Airbus A220-300 aircraft and changed its delivery schedule. In September, “AirBaltic” extended cooperation with “Lufthansa Group” for the next three years. In the new lease agreement, which will come into effect in the summer of 2025, up to 21 aircraft will be leased to the company.

“airBaltic” and “Pratt & Whitney” signed a long-term maintenance contract in September for the airline’s aircraft equipped with geared turbofan engines, or GTF (geared turbofan), and is structured according to model airtime rate, ensuring greater transparency. and predictability in maintenance planning.