In 2015, Czech Airlines generated an operating profit of CZK 250 million according to unaudited financial statements.
The results represent an improvement by almost CZK 850 million, compared to 2014, during which year the company closed accounts with an operating loss of CZK 598 million. Czech Airlines 2015 financial statements were thus closed with CZK 223 million profit whereas the previous year, the company recorded a loss of CZK 631 million.
“The greatest impact on Czech Airlines' results, equal to approximately CZK 630 million, was accounted to the restructuring plan measures, primarily to a decreased fleet capacity by 6 Airbus A320 aircraft, greater aircraft capacity use, the numbers of employees decreased to the necessary level and operating cost savings. The business model simplification and transfer to a one-way tariff structure, alongside a decreased flight ticket price range resulted in a higher average year-on-year ticket sales revenue and better seat capacity use,” Jozef Sinčák, Chairman of the Czech Airlines Board of Directors, said, adding: “New projects, such as operations for carriers other than Czech Airlines in India and Saudi Arabia and sales of complementary services, contributed significantly, among other factors, to our improved economic results.”
Low fuel prices in combination with the strengthening dollar exchange rate against the crown were reflected in the improved economic result by CZK 272 million, representing 3% overall company cost savings. The sale of three old, removed from service Boeing 737-500, gained Czech Airlines additional CZK 100 million. On the other hand, CZK 180 million was spent to cover the extra costs of the repair of a damaged OK-MEK aircraft motor.
“This year, we have planned to reach operating profit of CZK 180 million, provided mean oil prices do not exceed USD 50 a barrel and the dollar – crown exchange rate remains approximately the same as today,” Jozef Sinčák noted.
Czech Airlines 2015 Transport Results
Last year, Czech Airlines transported a total of 2.01 million passengers on its routes, using a fleet of 16 aircraft. A year earlier, the carrier transported 2.27 million passengers, using a fleet of 23 aircraft. Thousands of passengers were additionally transported by Czech Airlines on flights operated for other airlines, leasing its aircraft. The number of offered available seat miles (ASK) dropped year-on-year by 25%, but the mean aircraft seat-capacity use grew by 5% from 67% to 72%.
“This year we plan a mild increase of operations. We have prepared several new routes, for example to Helsinki, Birmingham, Zagreb, Skopje, Pisa, Malta and Odesa. Czech Airlines is going to lease one Boeing 737-400 on an ACMI basis for six months to cover the increased operations during the main summer season. Concurrently, one, operating leased, ATR 72 aircraft will be added to the company fleet,” Jozef Sinčák stated.
Daniel Šabík
Czech Airlines Spokesperson
