Nordic Aviation Group reports an improved profitability in 2022
The Nordic Aviation Group, owner of two airline brands, Xfly and Nordica, discloses an increase in revenues in its preliminary financial results’ report for 2022. The consolidated revenues have increased by 51% to 90.6 mln eur with a net profit amounting to 1.51 mln eur. The fleet increased by two aircraft and the group introduced its first Airbus A320 aircraft deployed for ACMI production for its airline customers.
The Group has added two new long-term European customers to its portfolio. The airline started operating for TAP Air Portugal, where one more aircraft ATR72-600s will be added to the fleet serving the airline soon. Three Airbus A320neo aircraft will be operating in Germany for a new start-up airline called Marabu. Furthermore – besides the ACMI production, the group will be supporting Marabu with various back-office and operational services. Due to extensive production growth the group is actively recruiting employees for its bases in seven European countries.
“Despite the global economic challenges and the Russian aggression in Ukraine affecting the entire airline industry, we were able to achieve acceptable financial results. The group has been actively seeking new talent to support its substantial growth and has successfully transformed the Nordica business model into an Airbus A320 ACMI operations’ provider. During the last year we also experienced two unscheduled high-cost engine maintenance events. All of this, together with an increasing inflation pressure, has had an impact on the group’s overall profitability. We have looked for creative ways of dealing with it and continue on a path of growth by entering into new long-term partnerships with our customers,” Eteri Harring, the group’s CFO, provides insights into the financial performance and outlook.
“This year we have already signed two new contracts for the periods to come. We have formalized our cooperation with MARABU according to which we additionally provide back-office and additional services, and entered into an ACMI agreement with Cyprus Airways for the upcoming summer season. Our competitive edge are our experienced people, a Nordic work culture and flexibility. We have also been very successful in attracting international talent both to our headquarters in Tallinn and to multiple operating bases all over Europe. As a result we have more than 30 different nationalities represented in our organization. We foresee a persistent growth potential of the market and believe that aviation will recover from the recent crisis entirely over the next years,” Jan Palmer, the CEO of the group confirms and says the airline has more co-operation offers to handle than it can actually accept and put in practice in various tailor-made cooperation forms.
The Nordic Aviation Group operates two airline brands, Nordica and Xfly. The Capacity Provider Airline group is owned 100% by the Republic of Estonia. The group operates from its bases in Tallinn, Vilnius, Stockholm, Aarhus, Copenhagen, Turku, Lisbon, Sofia and starting from spring also in Munich and Hamburg. The group operates long-term wet-lease ACMI production for major airlines within Europe, on behalf of such market players as SAS, TAP, MARABU. Both airlines, the Xfly and Nordica, are actively recruiting for over two hundred vacancies available in the group, as reported on their careersite jobs.nagroup.ee. The current fleet consists of 17 aircraft, split between ATR72-600s with 70 seats, CRJ900s with the capacity of 90 seats, and Airbus A320-type aircraft with the capacity of 180 seats. The group’s fleet will reach 22 aircraft in the second quarter of 2023.