The Latvia’s National Airline airBaltic Closes 2001 With A Profit!

The Latvian national airline airBaltic has announced that in 2001, for the first time in its history, the company has posted a profit of 56,000 lats after taxes (1,015 million lats paid in taxes). airBaltic financial turnover has gone up 12% to reach 28,01 million lats.

airBaltic costs increased several times over when, following the terrorist attacks in the USA, insurance companies lowered insurance coverage for losses incurred by third persons as the result of terrorism, hijacking and related risks. In a situation that was extremely critical for international aviation, the company, nevertheless found ways to revise current expenditures and establish a sound basis for future operations.

Despite the crisis in the airlines industry, the number of airBaltic passengers has increased by up to 15%, and the airBaltic market share has reached 42%. In 2001, airBaltic carried 248,700 passengers.

Compared with 2000, the company`s revenue from passenger traffic has increased by 14%, and revenue from cargo transportation is up 20%.

airBaltic Board member Janis Naglis says: “I am pleased that the three airBaltic postulates - safety, punctuality and service - have acquired a new feature: a profitable company. We think that the company will continue on this course, despite the difficult situation in the airlines business.”


2001 results compared with 2000:

* AirBaltic financial turnover has increased by 12%, reaching 28.01 million LVL in 2001.

* Annual profits for 2001 were 56 thousand LVL, annual losses for 2000 were -1.514 thousand LVL .

* airBaltic passenger numbers have increased by 14%. The total number of passengers carried in 2001 was 248,7 thousand.

* The number of flights has increased by 15%, reaching 9,171 flights in 2001.

* The load factor has remained unchanged at 52%.

* 95.2% of airBaltic flights departed no more than 15 minutes after the scheduled time of departure. This an improvement over the company`s own standard (95%) and a 14% improvement over the average achieved by the European Regional Airlines Association (81%).

* 2001 also saw an increase in airBaltic cargo transportation, with total cargo transportation revenues up 20% (472 thousand LVL).