Wednesday, 27 August 2008

Good seven month passenger report provides little relief for Adria

In the first seven months of this year Adria Airways, the national airline of Slovenia, carried more than 757.528 passengers, which is 23% more than in the same period last year. The total number of flights was up by 18% (scheduled flights by 17% and charter flights by 28%). In the case of scheduled services, the number of passengers per flight rose by 7% in comparison to last year. However increase passenger numbers is not reflecting in Adria’s profits as the airline struggles with oil prices.

In regards scheduled services, which is the most important sector, Adria Airways operated 17% more flights in the first seven months of this year and carried a total of 651.968 passengers, which is 25% up on the same period last year.
In the month of July alone, Adria carried 155.366 passengers, which is 13% more than in July 2007. Adria operated 2.298 scheduled flights – 21% more than in July last year – and a total of 2.778 flights – 19% more than in the same period last year. Adria carried 109.899 passengers on scheduled flights, which is 20% more than in the same period last year.

Like most other airlines, Adria Airways is this year suffering the negative consequences of oil prices. In the first 6 months of the year alone, Adria's fuel bill was 34% higher than planned, meaning additional costs of over 6 million Euros. In comparison to the same period last year, Adria has spent 65% or 9 million Euros more on fuel this year. The cost of oil will have a significant effect on the company's financial performance; in the first 6 months of the year this was in line with planned targets, but the company estimates that at the end of the year the outlined financial performance will be difficult to achieve.
Out of the EX-YU airlines Adria is coming in third in terms of passenger numbers behind Croatia Airlines and Jat Airways.


0 comments: