Home NEWS Adria Airways posts record 2016 profit

Adria Airways posts record 2016 profit

Adria Airways was the most profitable national carrier in the former Yugoslavia in 2016 after posting a net profit of 3.232.971 euros, up 135% from its 9.2 million euro loss in 2015. The figure represents its best result since the airline made its first profit in 1997, with Adria’s new owners delivering on their promise of steering the company back to profitability within the first year under their management. The airline achieved the numbers in large part due to the role it played in establishing Estonia’s national carrier Nordica, and the subsequent partnership between two, which saw Adria provide its counterpart with a booking system, operational services and staff training, at a fee. Furthermore, the carrier profited from aircraft leasing arrangements made with several airlines during the year and the sale of two Bombardier CRJ200 aircraft, as well as spare engines. Overall, revenue grew 2% to 155.2 million euros. Adria reduced its workforce from 420 employees in 2015 to 396 at the end of last year.

Arno Schuster, Adria's CEO

Adria’s CEO, Arno Schuster, noted, “2016 was a historic year in Adria Airways’ history. Following a change in ownership in March 2016, Adria began shaping its future under 4K Invest. After a long period of uncertainty for passengers, business partners and employees, emphasis was put on stabilising the business in the first few months. I am very proud of the commitment and enthusiasm shown by all employees at Adria Airways during the first year of restructuring. Every one of the company’s departments illustrated that it was open to change that had to be carried out in order to transform Adria Airways into a modern regional carrier. After defining the strategic tasks and objectives for each department, a number of measures began to be implemented, which required demanding time frames”.

He added, “With so many challenges, but also encouraging developments in 2016, Adria Airways has shown that it is ready to enter into a new phase of the restructuring process, which will be marked by growth in all business sectors. We are committed to providing our customers the most convenient way of travelling in the region and I look forward to many successful years ahead”.

The Slovenian carrier handled 1.103.530 passengers in 2016, down 11% on the year before. The decline came as a result of a significant reduction in the number of operated flights, a move aimed at improving the airline’s finances. Its average cabin load factor decreased from 67.9% in 2015 to 65.5% last year. Adria operated 19.470 flights in 2016, representing a decrease of 4% year-on-year. During the first seven months of 2017, the Slovenian carrier handled 672.905 passengers, representing an increase of 11%. It is currently exploring mutual synergies and efficiencies with Darwin Airline, which it purchased in July through its Swiss subsidiary and expects “substantial growth” in the coming period.