Tarom transported by 31% more passengers in S1

The local airline market registered an increasing demand this year. Therefore, Bucharest Henri Coanda International Airport reported an increase by 11.5% in the first three months of the year, compared to the similar period in 2009.

In the first six months of the year, Tarom airline transported over 900,000 passengers, increasing by more than 31% compared to the same period last year, while the revenues generated by passengers transport and freight increased by approximately 11%, stated the company’s representatives.

Tarom estimates revenues of EUR 376 mil. for the current year. Moreover, the company expects to transport over 2 million passengers in 2010, by approximately 21% more than compared to 2009. Also for this year the occupancy is estimated to exceed 60%.

Tarom, Blue Air and Wizz Air airlines are the main airline companies in Romania, transporting together approximately 60% of the total traffic in Romania, according to the estimates.

Wizz Air low-cost company reported an increase by over 30% of the passengers transported in the first semester in 2010, up to 914,000. Considering the company’s officials statements that the revenues per passenger registered similar result to the one reported in the same period last year, it can be concluded that revenues also increased by 30%.

Wizz Air estimate to transport this year from and towards Romania 2 mil. passengers.

Natasa Kazmer, Communication Manager of Wizz Air company, considers that the cold season will be tough for all airlines, therefore that more than ever, costs and operational efficiency will make the difference.

The measures of Tarom company include cutting administration costs by 10% in main stopovers, but also reducing personnel costs by cutting travel budgets by 50% and renegotiating contracts with training centers and hotels by up to 20%.

Moreover, in order to reduce costs by 15%, Tarom relocated the external agencies of the company in airports.

Further, the company has decided to reduce the number of internal agencies up to their profitability in order to cut costs by 10%, stated Tarom representatives.

According to the most recent estimates of IATA in 2010, the passengers’ traffic will increase worldwide by 7.1%, while freight traffic will increase by 18.5%. Net profit is expected to reach USD 2.5 bn. this year.

This year estimates for Europe reveal a re-evaluated loss of USD 2.8 bn. from USD 2.2 bn. in March.

The most optimist estimates of IATA are related to Asia-Pacific region, for which the profit is expected to reach USD 2.2 bn.

Sursa: Daily Business [13.07.2010], Wall-Street [12.07.2010]