Xfly's losses for the pandemic year 2020 were smaller than expected, mainly due to immediate and comprehensive measures to adjust the cost base to remaining revenues and production. The aviation market is coming back fast thanks to successful vaccinations. The volume of flights being operated by Xfly has increased almost four-fold since the start of the year and airline has decided to re-introduce the Embraer E195.
“I hope I am not too optimistic when I say Xfly is through the darkest and longest crisis aviation have ever seen and as a team we come out stronger and more dedicated than ever. We see also that our business concept is even better attuned to the needs of European aviation in the wake of the pandemic,” says Jan Palmer CEO of Xfly.
The Covid-19 hit Xfly at the worst possible moment. During the first quarter the company had prepared for the biggest expansion ever starting summer season 2020. New long-term contracts with SAS, LOT and other airlines meant recruiting and training a lot of new crews and office people making up to 600 employees and 24 aircraft for 2020 and beyond.
Due to the Covid-19 pandemic, Xfly posted a loss of 6,5 million euros during 2020, mainly from the first half year until all mitigating actions got full effect. During the fall of 2020 Xfly had adapted to a lot less production than originally planned. This was made by making 50% of its employees redundant and remaining staff on workload reductions and amazing support from suppliers, lessors, and customers.
The losses brought about by the standstill nevertheless left the company in the red, which led to Xfly’s owner, Nordic Aviation Group AS (NAG), injecting 6 million euros into the airline’s equity. This amount was taken from the 30 million euros in crisis aid obtained from the Estonian government.
“The aviation market is coming back fast thanks to successful vaccinations and all efforts to conquer the pandemic and we as a dedicated capacity provider to major airlines have already seen more business opportunities arising”, says the CEO Jan Palmer.
Xfly is looking forward to continuing its rapid growth as a dedicated long-term regional aircraft capacity provider partner to major airlines in Europe. Outsourcing of regional production with aircraft up to 140 seats is developing fast due to the need for all airlines to focus on its core business.