According to the annual report, the sales turnover of Nordic Aviation Group (Nordica) in 2018 increased to 107.7 million euros, which is 30% more than the previous year.
The number of passengers on the Nordica Tallinn route network increased by nearly 33 per cent, reaching 765,000, and the number of flights operated increased by 38 per cent, reaching nearly 16,000. In total, throughout 2018, approximately 2 million people flew on the Tallinn route network and in foreign markets.
According to Kristi Ojakäär, Board Member of Nordica, the growth of air traffic and the high number of passengers did not result in positive economic results. “The consolidated financial results of the Nordic Aviation Group fell to a loss of EUR 5.4 million,” Ojakäär noted. “The financial performance was primarily influenced by the continuing loss of the Tallinn network and the costs of changes in air traffic, including fixed costs for aircraft.”
The parent company's unconsolidated loss constituted nearly EUR 5 million of the financial result, including additional price agreements for the airline services provided by its subsidiary, Regional Jet, for 2018, which was concluded in the framework of the renewal of cooperation with LOT last week. According to Ojakäär, Nordica also reached an agreement with LOT to invest in the joint venture, Regional Jet. “A new balance has been found between the partners, enabling us to develop the company together,” Ojakäär added.
“Nordica has a clear goal to increase profitability. The changes made in the line network at the beginning of this year have already had a positive effect on this year's financial results, and from autumn we will focus only on profitable activities, stop flying unprofitable routes, and focus on increasing the volume of foreign flights through the subsidiary, Regional Jet", added Ojakäär. According to Ojakäär, the provision of air services to major airlines, such as SAS and LOT, was successful in 2018 and has high growth potential in the years ahead. “The Regional Jet customer base is growing, and we believe that this business is a long-term perspective,” Ojakäär added.
In order to support Regional Jet business volumes in 2018, Nordica's fleet increased by three aircraft and further fleet increases are planned over the coming years. Aeroplanes added in 2018 started to implement international agreements of subsidiary Regional Jet, mainly to the largest Scandinavian airline, SAS.
Founded in 2015, the Nordic Aviation Group AS (Nordica) has grown to become the largest airline in Estonian history. Since 2016, Nordica has been cooperating with LOT Polish Airlines (LOT). Regional Jet, a subsidiary of Nordica (51%) and LOT (49%), provides air services to LOT, Nordica, SAS, Air Serbia, Flyby and various contract partners in Europe. Regional Jet operates 19 aircraft and transports around 2 million passengers each year, employing more than 500 aviation specialists in Estonia and abroad.