Losses despite 21% increase in traffic (200 words)

Published: 2/1/2001

Lithuanian Airlines (Lietuvos avialinijos (LAL)) has reported preliminary losses for 2000, despite carrying 21% more traffic during the period. The losses did however, fall by 18% on 1999, to $5m. In 2000, LAL carried 294,800 passengers (up from the 244,000 passengers carried in 1999) and the company's load factor rose to 54.51 % in 2000 (up from 44.48 % in the previous year) on 2% more flights than 1999. LAL says that while its revenues rose by 14.87% in 2000, the rise was cancelled out by the 11.71% rise in costs The cost increases were largely due to increased aircraft maintenance costs. These rose from 0.18 m litas ($0.05 m) in 1999 to 1.7 m litas ($0.4 m) in 2000. The company also saw an increase in fuel costs of 8m litas ($2 m), which when accompanied with the fluctuations in the Euro against the dollar-pegged currency, resulted in further losses of around 0.5 m litas ($0.13 m) per month. The deteriorating financial situation at the airline has also resulted in the firing of the management team by the outright owner, the Lithuanian State Property Fund. They have been replaced by Kazimieras Savinis, deputy Transport Minister.

Article ID: 2333