· EBITDA in the first 9 months of 2019 climbed 131.4% yoy to PLN 315.1 million
· In Q1-Q3 2019 the Company generated an operating profit of PLN 230.9 million and net profit of PLN 104.5
· Cooperation with TUI extended for another two years
· Dividend of PLN 0.7 per share paid to shareholders in July 2019
“As always, the summer season is the busiest period in the industry when we operate at full speed and the result is clearly visible in our outstanding financial results. At the peak of the season we operated 25 aircraft carrying the customers of Poland’s four largest travel agencies and many international travel agencies. Robust market conditions and the related unwavering demand for our services has been conducive to these results. We are a tried and true partner for the largest and at the same time the best tour operators on the market. That means we have been able to grow the size of our business and enhance our effectiveness in a consistent manner. These results are better than what we posted in the corresponding period of last year, chiefly due to the extensive demand for flights during low season and stable demand in the summer. The European market is gradually dispensing with oversupply in our market sector. Those players who overinvested are successively going under as they planned for excessively optimistic growth. Enter Air has always planned and delivered its undertakings conservatively, which has produced outstanding results in the long run, placing us among the top airlines in Europe”, says Grzegorz Polaniecki, management board member of Enter Air.
Enter Air’s revenues totaled PLN 1.34 billion in the first three quarters of 2019, up 26.4% from PLN 1.06 billion in the corresponding period of 2018. This generated operating profit of PLN 230.9 million (growth of 88% yoy) and net profit of PLN 104.5 million, up 32.9%. In the first three quarters of 2019, EBITDA was PLN 315.1 million versus PLN 136.2 million last year.
In October 2019 Enter Air and TUI Poland signed an annex to the current contract for the Winter 2019/2020 season. Consequently, the value of the contract in terms of the base program rose to USD 31.4 million (approx. PLN 120.8 million) while additionally extending collaboration with this tour operator by another two years. The value of the contract in its first year for the Summer 2020 and Winter 2020/2021 season is USD 147.9 million (approx. PLN 569.3 million). The exact volume of the Summer 2021 and Winter 2021/2022 tourism seasons will be determined in the future. The value of the contract for the second year will be no less than USD 147.9 million.
“We are in the process of concluding a number of contracts for subsequent seasons with our Historic Customers. The market context is positive, the competition is weakened and unpredictable, while the demand for our carriage services across Europe is high. We continue to retain our edge because we have an effective, low cost business model enabling us out perform the competition in the long run”, says Grzegorz Polaniecki.
Enter Air is the largest private airline operating in Poland and the fourth tourist airline in Europe measured by fleet size. In the summer season the carrier conducted flight operations using 21 Boeing 737-800 aircraft, fully harnessing the aircraft available in its fleet. On account of the extensive demand among tour operators, four additional aircraft were leased from other carriers under a wet-lease contract. The two Boeing 737 MAX 8 aircraft in the carrier’s fleet are still waiting for flights utilizing these aircraft to be resumed across the world. The flight suspension is related to Boeing implementing corrective measures in 737 MAX aircraft.
Enter Air continues to implement its profit-sharing policy: in July 2019, a dividend of PLN 12.3 million, or PLN 0.7 per share, was paid to its shareholders.