Profit despite crisis

Crisis in Adria? Not in 2008

Slovenian flag carrier Adria Airways expects an operating profit of 1.9 million Euros in 2008 despite the global economic crisis that the aviation industry has been caught in. This is a good million less than in 2007, although the number of passengers is expected to increase by 17% to 1.3 million by the end of 2008, while European growth is four times lower. High oil prices cost the company an additional 11 million Euros, the flag carrier wrote in a press release after the session of the company's management and supervisors last Friday. Adria's income will exceed 200 million Euros, which is 13% more than in 2007 and 5% above the estimated levels. The company retained operational liquidity throughout the year, while cash flow will finish at 32 million Euros, the press release says. The supervisors confirmed the plan for 2009, which forecasts no increase in the number of passengers due to the financial crisis. The management presented additional measures, which it is preparing to rationalise operations in order to achieve a positive result despite the expected recession, the company wrote.