Air Nostrum managed to curb the harsh impact of the pandemic on its operations in 2021. According to Carlos Bertomeu, president of the Valencia based company, the airline cut its losses by 95 percent versus 2020. From a loss of 140.4 million in that year, the figure dropped to 7.3 million in 2021.
On the revenue side, the annual balance shows a solid recovery from the depths of the Covid crisis. Revenue rose from 256.5 million in 2020 to 324.2 million in 2021, a 26 percent increase driven largely by higher passenger numbers.
Bertomeu noted that these results are better than the industry average. He highlighted improvements in operational costs and fleet utilization thanks to complex lease agreements. He also pointed to ERTE measures that helped preserve the companys human capital. In recent months Air Nostrum added 75 employees, most of them cabin crew.
Employee care proved pivotal to the rebound in passenger volumes and flights in 2021. The rise in passengers versus 2020 aligned with Spain’s market trend, increasing from 1,803,000 to 2,855,000 travelers, a 59 percent jump.
Within the domestic market Air Nostrum demonstrated a strong recovery in air operations, growing by 55 percent from the prior year. Bertomeu summarized that the carrier began flying earlier and, as a result, became the leading operator in Spain from January to May 2021, boosting flight activity from 30,066 in 2020 to 46,710 in 2021.
The future of the company
Looking beyond 2021, Bertomeu outlined the process for receiving support from the Solvency Support Fund for Strategic Companies to provide liquidity and solvency amid the pandemic. The fund is expected to be repaid, with a loan estimate of 111 million euros. He also mentioned that Air Nostrum holds current liabilities of 30 to 40 million euros and faces additional borrowing of about 140 million euros from ICO loans.
The Valencia based airline chief also stressed the influence of the war in Ukraine on fuel prices, noting a rise in kerosene from 907 dollars per metric ton to 1,395 dollars. Despite this, he explained that 2022 would be cushioned by Air Nostrums higher than industry average fuel hedging.
Regarding its strategic plans, the leader voiced a continued aim to integrate under a common entity with Irish CityJet to unite regional aviation in Europe as soon as feasible. He warned that negotiations must proceed with care given the postpandemic context. While maintaining Air Nostrum’s workforce and scale, he noted that CityJet had reduced its size and staff, prompting new adjustment steps. He also indicated that informal talks with other potential partners have already begun to explore collaborative ventures.