airBaltic Reports 2020 Net Loss of €265 Million on a 72 Percent Revenue Decline to €143 Million
Air Baltic has reported a full year 2020 net loss of €265 million on a year-over-year revenue decline of 72 percent to €143 million. Despite the impacts of the global COVID-19 pandemic and severe travel restrictions, the airline carried 1.34 million passengers in 2020.
On Thursday (April 15, 2021), airBaltic announced their 2020 financial results. The carrier reported a full year net loss of €265 million on a 72 percent year-over-year decline in revenue to €143 million. Like all airlines, airBaltic’s 2020 financial results were heavily impacted by the global COVID-19 pandemic and associated travel restrictions. However, despite adverse market conditions, the airline served 1.34 million passengers in 2020. Last year, airBaltic connected Riga, Tallinn and Vilnius on a total of 76 routes, providing essential passenger and cargo connectivity for the region.
In Today’s announcement, airBaltic’s Chief Executive Officer, martin Gauss, said,
“We saw a dramatic change last year, but airBaltic’s core vision for the future remains the same – to be the number one carrier in the Baltics, providing the best connectivity to and from the region. Last year, in the wake of the crisis, we significantly reduced our cost and adjusted the business plan Destination 2025 CLEAN. We took a decision to permanently phase out Q400 and B737 aircraft and became a single aircraft type operator of the Airbus A220-300 two years ahead of the original plan.
“We look forward to an increase in travel demand that is now slightly showing some positive signals. We have developed several scenarios for the gradual market recovery. Our base scenario reduction is currently in line with the industry wide projections, and we are flexible to make further adjustments whenever necessary. To support our future return to profit, we will accept additional seven Airbus A220-300 aircraft in 2021.”
Established in 1995, Air Baltic Corporation SA (airBaltic) is a joint stock company with most of the equity (96.14%) held by the Latvian state and the remaining shares held by Lars Thuesen through his holding company Aircraft Leasing 1 SIA. The airline Group also includes Air Baltic Training SIA, Loyalty Services SIA, Baltijas Kravu Centrs SIA and Crew Resources AS. One of the most punctual carriers in the world, the airline connects the Baltic region to over 70 destinations in Europe, the Middle East, and the CIS with a fleet of 25 Airbus A220-300s.