Taking into account the negative impact of the Covid-19 pandemic, the Latvian airline airBaltic Group closed 2020 with a 72% drop in revenue and a loss of 264.6 million euros, according to the airline.
Last year, airBaltic’s revenue was 143 million euros, which is 72% less than a year ago. Last year, the group operated with a loss of 264.4 million euros due to the crisis.
Latvian airline airBaltic Transported in 2020 1.34 million passengers or 73% less than a year ago.
Martins Gauss, CEO of airBaltic, told the media that last year the airline underwent a dramatic change, “but airBaltic’s basic vision for the future remains the same – to be the largest carrier in the Baltics, providing the best connectivity to and from the region”.
AirBaltic has decided to discontinue the use of the Bombardier Q400 and Boeing 737 aircraft and to become a carrier with only one type of aircraft, the Airbus A220-300, two years earlier than originally planned. “
“We are looking forward to an increase in travel demand, which is already showing positive signals. We have developed several scenarios for a gradual recovery of the market. Our master plan is currently in line with industry forecasts, and we have the flexibility to make additional adjustments if the need arises. To support our return to future profitability, we will receive seven more Airbus A220-300 aircraft in 2021, ”Gauss said.
Last year, the airline connected Riga, Tallinn and Vilnius on a total of 76 routes, providing the region with much-needed connectivity and cargo transportation.
CONTEXT:
Last spring, the Covid-19 pandemic paralyzed air traffic, and international flights resumed only on 18 May. During the crisis, airBaltic announced the collective redundancies of 700 employees, promising to reinstate them within a year. Therefore, the government on July 14 after authorization from the EC supported a € 250 million investment in airBaltic ‘s share capital, increasing its stake to 91%.
Despite the pandemic, which costs the national airline airBaltic an average of 3.5 million euros a week, the company did not ask for another state financial support at least in December. But if the incidence of Covid-19 does not decrease, then airBaltic the money could end in 2021. in September.
Gauss in advance expressed that it will ask for government support if the situation does not improve in the spring. Transport Minister Tālis Linkaits (New Conservative Party) said that airBaltic also at the current minimum number of passengers will be able to ‘hibernate’ 2021 without additional public support, but if the situation in the aviation sector does not improve due to Covid-19, by the end of 2021 to the government may have to return to the issue of support “airBaltic”.
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