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Romania's Blue Air swings to profit in FY 2019

Romania's Blue Air swings to profit in FY 2019 Blue Air

BUCHAREST (Romania), October 29 (SeeNews) - Romanian low-cost carrier Blue Air said it has posted a 3.4 million euro ($3.77 million) net profit in the financial year ended September 30, 2019, compared to a loss of 24.4 million euro in the preceding comparable period.

Blue Air posted a 8.9 million euro operating profit in financial year 2019, compared to an operating loss of 19 million euro in 2018, the company said in a press release on Monday evening.

"We are pleased to announce an improved financial performance in 2019, as reaching the profitability threshold, after three years of financial losses due to accelerated operational growth, is an important achievement for Blue Air. We have ambitious plans to better meet the expectations of our passengers; our transformation strategy has already achieved results and has created the prerequisites for long term financial sustainability for our company," Blue Air CEO Oana Petrescu said.

The percentage of ancillary revenues from total revenues increased to 9%, compared to 8% in financial year 2018.

At the same time, total revenues for the 12 months ended September 30, 2019 totaled 390 million euro without passenger taxes, roughly at the same level as in the like period of 2018. 

Blue Air, the only air carrier in Romania with 100% domestic capital, started operations in December 2004. In 2013, it was taken over by Airline Management Solutions Company for 30 million euro.

The airline has bases in Romania, Italy, the United Kingdom and Cyprus and a fleet of 29 aircraft. Blue Air operates flights to more than 100 destinations in 20 countries.

In October 2018, Civil Aviation Group comprising Blue Air and two individual associates, bought the indebted flag carrier of neighbouring Moldova for some 61 million euro.

($= 0.9013 euro)