In a hostile market Krasair has performed very strongly in the first half of 1999 with revenues up by 49%

Published: 8/13/1999

According to the latest Aviation Market Bulletin, in the face of a hostile market, Krasair, increased its revenues and profit over the first six months of 1999, which it largely attributed to a reorganisation of resources. Revenues in the first half of this year rose by 49% compared to the same period in 1998. Aviation Market reports Krasair as stating that it expects profits from its May-September summer season in 1999 to exceed the whole of 1998"s profits by 90%-100%. Other positive indicators include a 10% increase in passenger turnover, to 303,500, during the first half of 1999, and a 21% increase in mail loads, to 10,000 tonnes. Krasair"s passenger load factor increased from 54% to 58% and its cargo load factor increased from 46% to 50% over the period. The company confirmed that its restructuring of resources to focus on profitability had been a primary factor behind the growth. It added that personnel had been cut by 13%. Krasair, which is based in the Krasnoyarsk region of Siberia, carried a total of 615,000 passengers in 1998, and 15,000 tonnes of cargo. Without further explanation these figures appear to be remarkable given general market conditions particularly in the Krasair"s home market of Siberia. The airline has benefited from the virtual withdrawal of Transaero from Siberian routes and the weakness of other regional carriers, but to grow revenue and profit is a marked achievement.

Article ID: 751