Slovenia-based Adria Airways has reported a 2013 net loss of €3.1 million ($4.3 million), a €7.7 million improvement compared to the year-ago period. However, the Slovenian national flag carrier achieved a positive operating result of €0.465 million year-over-year. The EBITDA estimate is €7.9 million, which is €8.3 million higher than 2012.
The airline said the results are the consequence of one-off negative effects relating to past operations, particularly “the sale of part of the company’s assets at below book value, a penalty for the return of a leased asset, and additional provisions relating to potential liabilities.”
2013 passenger numbers (scheduled services) grew 4.8% while the number of flights fell 5.1% compared to 2012. Passenger load factor was 73.16%, up 6.1% year-on-year.
By the end of 2013, the company said it “had successfully carried out a large number of operational restructuring measures,” including strategies to reduce costs and increase income. In 2013, the company reduced its debt by €8.9 million.
However, the outlook for Adria remains difficult, as the business environment in Slovenia—compared to the European Union (EU) average—could negatively impact the carrier’s operations by more than €2 million. The business environment will also negatively impact the competitiveness and the possibility of a successful privatization of Adria Airways, it said in a statement.
The European Commission is investigating Adria’s financial rescue deals to verify whether cash infusions breach EU’s state aid rule. The EU is also investigating LOT Polish Airlines, airBaltic and SAS Scandinavian Airlines.