Bucharest, October 28, 2019 - Blue Air, the largest Romanian airline by number of passengers, announces financial results for the 12 months to 30 September 2019.
Financial Results1
- The operating profit for the 2019 financial year reached EUR. 8,9 mil., compared to an operating loss of 19 million euro in 2018.
- The net profit of EUR 3.4 million euro (before restructuring costs), compared to a loss of 24.4 million euro compared to the preceding period.
- The percentage of ancillary revenues from total revenues increased to 9%, compared to 8% in financial year 2018
- Total gross income over the past 12 months remained the same compared to the preceding period, of approx. EUR 390 (no passenger taxes included);
Corporatist Governance
- New management team fully in place from May 2019
- Optimum mix of aviation and financial experience
- Fully qualified to achieve Blue Air’s valuation potential
- Committed to enhancing corporate governance and profitable growth
- New Advisory Board created
- Independent governance structure in line with Blue Air’s commitment to best practice, with experience from a cross-section of industries
Operational performance
- New business model implemented – ‘Low-Cost, Low Complexity’
- Focused on revenue increases from ancillary products, simplified operations and cost reduction
- Improved, ‘on-time’ performance achieved
- Compares favourably with competitors
- Customer-centric policy led to a seat load factor improvement to an annual average of 80% and over 90% achieved during the summer
Outlook
- Organic growth is our vision with passenger satisfaction at the core. This involves optimizing routes and the frequency of flights
- Commercial performance will be improved via investment in IT, increased revenue from ancillaries, fleet renewal and tight cost control
- We continue to build on our five pillars of performance: passenger satisfaction, operational efficiency, employee engagement, social responsibility and overall added value
- These strategic tactics will all contribute to, and ensure our medium and long-term sustainability
Oana Petrescu, Chief Executive Officer of Blue Air said:
“We are pleased to announce an improved financial performance in 2019, as reaching the profitability threshold, after three years of financial losses due to accelerated operational growth, is an important achievement for Blue Air. We have ambitious plans to better meet the expectations of our passengers; our turnaround strategy is beginning to take effect which will ensure the long-term sustainability of our company”
“We will continue to do the simple things well: fly on time, operate efficiently, grow organically, act responsibly and keep our passengers happy. It is an exciting time for the company, and we would not be in this place without the hard work of all our employees. I thank them all for their continued dedication.”
[1] As per preliminary financial status, in accordance with International financial reporting standards, being audited
