You're reading: AeroSvit intends to see no loss in 2012

AeroSvit Airline is planning to see no loss in 2012, the co-chairman of the company's supervisory board, Hryhoriy Hurtovy, told reporters in Kyiv on April 2.

"The task this year is to balance business and bring it to a zero loss. The company has to do this," he said.

Answering a question on the reduction of operation expenses, Hurtovy said that there would be a reduction of average operation expenses if there were an increase in the number of flights.

"If transportation grows, operation expenses in absolute figures will grow, but if we speak about the specific parameters, we could achieve around a 10% fall in operation expenses," he said.

As reported, in 2011, AeroSvit’s net loss grew by 3.3 times on 2010, to Hr 1.456 billion.

The further development of the route network in 2011, including the opening of 11 new routes and an increase in the frequency of flights on most routes, required additional investment. In addition, the new routes launched by AeroSvit in 2010 (about 20) have not reached profitability. An average of two years is needed for this. The next most important point of additional costs is the increase in the price of jet fuel, mostly in the spring of 2011.

However, the company’s assets in 2011 increased by 10.6 times, to Hr 1.12 billion. The number of employees at AeroSvit in 2011 grew by 31.4%, to 2,568 people.

AeroSvit was established in 1994. It is based at Boryspil airport. The airline services 80 international routes to 33 countries and transports passengers to Ukrainian cities. Its fleet consists of 19 medium-range Boeing 737s and eight long-haul Boeing 767s. In addition to that, it operates Airbus 320, Airbus 321, Embraer 145, and Embraer 195 aircraft jointly with partner airlines.