Adria>Adria Airways records a positive operating result in 2013

Adria Airways records a positive operating result in 2013

Author: Adria Airways

Operating results for 2013 examined by the Supervisory Board at yesterday's 23rd ordinary meeting.

Passenger numbers (scheduled services) grew by 4.8% while the number of flights fell by 5.1% compared to 2012. Passenger load factor (scheduled services) was 73.16%, up by 6.1% on 2012 and 6.8% better than the planned figure for 2013.

By the end of 2013 the company had successfully carried out a large number of operational restructuring measures which contributed to the extremely positive trends in operations and signal the company's long-term survival and successful growth. While the majority of the restructuring measures were based on reducing costs, a significant proportion were focused on increasing income. In addition to measures which are, for the most part, the company's responsibility, the Restructuring Programme also envisaged measures relating to the regulation of the business environment, to which the Republic of Slovenia committed itself through the Restructuring Programme. The company considers that the business environment in Slovenia – compared to the EU average – has a negative impact on its operations and estimates this negative impact at more than €2 million. This business environment also has a negative impact on the competitiveness of the aviation industry in Slovenia in general, and on the possibility of a successful privatisation of Adria Airways and, indirectly, other companies in the sector.

According to the most recent estimates the company will conclude 2013 with a positive operating result of €0.465 million and a negative net result of €3.1 million, which is a €7.7 million improvement on 2012. The negative result is the consequence of one-off negative effects on the result which in most cases relate to past operations. In particular these are the negative impact of the sale of part of the company's assets at below book value, a penalty for the return of a leased asset, and additional provisions relating to potential liabilities. The EBITDA estimate is €7.9 million, which is €8.3 million higher than 2012. In 2013 the company reduced its debt by €8.9 million.

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