AirBaltic Annual Report 2000

The Latvian National Airline airBaltic informs that last year, for the first time in the history of the company, operating results have been positive, showing a profit of LVL 77,000. Total turnover amounted to LVL 24.94 million, an increase of 10% over the previous year.

These improved figures are the result of a successful economic strategy and an equally successful implementation of this strategy, as well as a lessening of the impact of the Russian economic crisis.

airBaltic is pleased that the number of passengers in 2000 has gone up by 12% to reach 218,000. Passenger flow through the Riga airport has increased by 2%. In 2000, airBaltic was able to increase its market share by 2% to an average 39%.

A cost efficiency programme was introduced in 1999. This programme has produced substantial results, with total costs in 2000 down 10% from the previous financial year. A major investment within this programme was the construction of the airBaltic technical maintenance hangar, which was opened in 2000.

“The 2000 financial results, and especially the operating profits are a sound basis for the future development of the company. They also show that operational efficiency has been improved, and that the company`s total turnover has increased. We plan to continue the cost control programme in 2001 as well. The financial results for the first three months of this year let us believe that we will end this year without losses and with even greater operating profits,” says the Senior Vice-president of Finance and Control, Inta Susta.


2000 financial results compared to 1999:

* AirBaltic turnover has increased by 10%, reaching LVL 24.94 million in 2000.

* Operating profits were LVL 77,000. In 1999, there was a loss of LVL 4,1 million.

* The net financial results for the year 2000 are LVL -1,514 million (negative), but this is a huge improvement over 1999, which ended with a minus of LVL 5 million.

* The number of airBaltic passengers has gone up 12% to a total of 218,000 passengers in 2000.

* The number of flights has been reduced by 6%, with 7999 flights in 2000.

* The cabin factor has gone up 15% to reach 52%, indication of a more of effective use of resources.

* 96% of flights departed no later than 15 minutes after schedule. This is an improvement of 1% over the company standard (95%) and 19% over the European Regional Airline Association average (77%).

* In 2000, airBaltic cargo turnover also showed an improvement, with total cargo volume up 12% from 1999.