Czech Airlines

William Malcolm

CSA Reports 105 Million Crown Loss In First 3 Quarters

Czech Airlines (CSA), which is currently in bankruptcy, recorded a pre-tax loss of over 105 million crowns during the first nine months of this year. Nevertheless, thanks to the sale of assets, especially emission allowances, the company is gradually paying part of its receivables, thus increasing the balance of money at its disposal. This follows from the report of the insolvency administrator Michael Šefčík. According to him, it is not necessary to stop the airline’s operations or declare it bankrupt.

Last year, the airline ended up with a loss of more than 2.64 billion crowns, according to an expert opinion commissioned by an insolvency court. The report also assessed the assets of the airlines in the amount of over 172 million crowns.

So far this year, CSA has earned over 522 million crowns by the end of September. However, by selling the assets, they gradually increase the balance in their available account. At the end of September, for example, it almost doubled compared to July to about 270 million crowns. Thus, according to the insolvency administrator, airlines can still repay property receivables and other debts, despite the loss.

“As of today (November 10), the insolvency administrator is not aware of any fact that would justify the need to stop the debtor’s business or turn the reorganization into bankruptcy.

CSA was hit hard by the effects of the coronavirus epidemic, and the carrier had to cancel a large number of connections. He laid off around 300 workers last year due to losses. In February, the company announced to the labor office its intention to lay off all 430 employees. In this context, CSA pointed out that this is one of the steps in the planned reorganization, and the intention does not have to mean the release of everyone. Due to the crisis, the airline’s fleet was reduced to two aircraft. The company has been in bankruptcy since March, and in June the court approved its reorganization, which is to be prepared by the parent company Smartwings.