Terrorist attacks reduce Czech Airlines profits

06-06-2002

The Czech state-run airline CSA has reported that its net profit dropped 57 percent in 2001 as a result of reduced demand following the terrorist attacks on the United States.

The Czech state-run airline CSA has reported that its net profit dropped 57 percent in 2001 as a result of reduced demand following the terrorist attacks on the United States.

In 2001, Czech Airlines, a member of the SkyTeam Alliance, achieved a net profit of just under 8 million USD under international accounting standards, compared with more than 18 million in the previous year.

CSA spokesman Dan Plovajko said the economic result was directly influenced by the tragic events of September 11 and CSA avoided ending in the red thanks to an intensive growth in the number of passengers, but also due to a low number of flights.

In November, the carrier halted its three weekly flights to Newark, New Jersey, and cut the number of flights to New York's JFK International Airport from seven to four per week, citing plummeting demand after the terrorist attacks.

Tough economic measures adopted by CSA's management also helped support profits, Plovajko said, without detailing the measures.

The airline carried a total of almost 2.9 million passengers in 2001, up 17 percent from the year 2000. The airline estimated that the demand would have been much higher had the terrorist attacks not occurred.