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Thursday, 26.12.2024, 20:07
Small Planet Airlines counts increased revenues
Currently Small
Planet Airlines operates twenty-one aircraft under their AOCs: seventeen
Airbus A320 aircraft in 180 economy seat configuration and four Airbus A321
aircraft in 220 economy seat configuration. Cabin interiors of all Small Planet
Airlines’ aircraft were retrofitted this year, including new Recaro seats, LED
lightning, Premium seating, on-board entertainment service Air-Fi, and more.
Rapid growth and record investments in fleet
expansion and aircraft upgrade programme contributed to Small Planet Airlines profitability decrease – its gross profit
margin lowered from 9.8% to 1.0% when compared to H1 2015.
“Unfortunately, 4 out of 6 six new
aircraft in our fleet were delivered very late and this was the main reason
behind disappointing on-time performance and profitability. This delay was a
product of our planning mistakes, further amplified by unscheduled maintenance
required on the aircraft. We’ve learned an expensive but valuable lesson and we
believe this was a one-off event which we are able to prevent from happening in
the future. We expect the
Q3 profitability to be a bit down as well due to the same reasons, and the Q4 to be already in line with that of the
last year”, Vytautas Kaikaris, CEO of Small Planet
Group, told.
According to him, one of the most challenging market
trends the airline industry faced this year was scarcity of personnel, especially
pilots.
“Together with unplanned technical maintenance
of some aircraft and new aircraft delivery delays, this caused a lot of
turbulence in our flight schedules, especially in Poland and the UK. We
sincerely apologize for this both to our clients and the passengers. It seems
that everything hit us at the same time, but we are back on track now and after
careful internal reviews we already know what went wrong and have active
measures to prevent such situations in the future”, Mr. Kaikaris spoke.
Improving passengers’ experience across all
markets and operations remains among the top priorities for Small Planet Airlines. With this aim record
investment projects were implemented in 2016, with aircraft cabins’ upgrade being
the largest of them, followed by a completely redesigned website and establishing
a Customer care unit.
As for winter 2017, Small Planet Airlines plans
to continue its operations from Poland, Lithuania, Germany, and the UK, as well
as expand its presence in the Asian region to balance seasonality.
“Our top markets remain the same, and Asia will
continue to play an important role in our strategy due to winter utilization. Despite
the challenges this summer, the UK remains among our top markets, too. The
Brexit vote did not impact our trading during the six months and apart from the
sterling devaluation we do not expect any material implications related to this
vote in the nearest future”, Mr. Kaikaris concluded.
Poland continues to be the largest outbound
market for Small Planet Airlines,
representing about 50% of the overall charter activity this summer, followed by
the United Kingdom and Lithuania, each having about 16% of the share. Germany shares
11% and France about 5% in the balance of the activity. The group operates in
11 bases and flies to more than 45 destinations.