Europe

Czech Airlines Announces a Profit of 241 Million Crowns for 2016

Czech Airlines A319
Antonio Doblado

Based on unaudited economic results, Czech Airlines reached a total profit of 241 million Czech crowns in 2016.

Compared to 2015, in which the Company reached a profit of 223 million Czech crowns, this was an 8% increase. The 2016 Czech Airlines operating profit was closed at 285 million Czech crowns.

“Czech Airlines was able to use last year’s favourable conditions within the aviation sector and generate an after-tax profit of 241 million Czech crowns. In 2016, all transport indicators grew, we launched 11 new routes, expanded our fleet by one ATR 72 aircraft and increased the number of flights year-on-year by more than 9%,” Jozef Sinčák, Chairman of the Czech Airlines Board of Directors said, adding:

“Czech Airlines operating profit was fuelled by better use of the fleet’s capacity: year-on-year by 10%, the increase in demand in Russia and Ukraine – primarily in the second half of 2016, higher load factors and, last but not least, the ability to maintain operating costs at last year’s levels. We continued to simplify our business model, focusing on incoming passengers to the Czech Republic, new markets and old segments. In December 2016, we changed our product package policy, introducing new tariff structures within the category of Branded Fares, thanks to which our average load factor has been growing. In January 2017, it reached 75%, which is a year-on-year improvement of 12%.”

Operations for other carriers, primarily in Saudi Arabia, sales of additional services and favourable aviation fuel prices were among the factors which also contributed to reaching an operating profit.

“Due to the significant changes of certain macroeconomic indicators, primarily increased aviation fuel prices, the Czech crown exchange rate and its position against the USD and the EUR, and increased competition, we have planned a significantly lower operating profit of tens of millions of Czech crowns,” Jozef Sinčák added.

Czech airlines 2016 transport results

In 2016, Czech Airlines transported a total of 2.71 million passengers and 8,813 tonnes of mail and shipments aboard its 17-aircraft fleet. 2.26 million passengers used Czech Airlines’ regular scheduled services, representing a year-on-year growth of nearly 13%. An additional 444 thousand passengers were transported by Czech Airlines’ aircraft for other carriers, to whom they leased aircraft.

In 2016, Czech Airlines increased its aircraft load factor year-on-year by 10% with a more than 9% increase in the number of flights. This represents a 3.5% increase in offered seat capacity. Last year, the average Seat Load Factor on Czech Airlines regular scheduled services improved year-on-year by almost 1%, reaching 75.4%.

In 2017, Czech Airlines plans a slight increase in operations and has planned launches of new services to Aarhus, Lisbon, Malmö, Reykjavik and Verona. It will also renew its seasonal routes to Malta, Bilbao, Beirut, Linköping, Porto, Riyadh, Skopje and Växjö this summer season. It will expand its fleet by one operating leased ATR 72 aircraft at the beginning of April. Thus, the number of ATR aircraft operated by the company will increase to eight and the Company fleet will include a total of 18 aircraft.

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