Xfly has stated that its 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.
Xfly posted a loss of €6.5 million during 2020, mainly from the first half year. During latter half of 2020 Xfly states that it adapted to a lot less production than originally planned by losing 50% of its employees and reducing workload of remaining staff as well as benefitted from the “amazing support” from suppliers, lessors, and customers.
The losses nevertheless led to Xfly’s owner, Nordic Aviation Group (NAG), injecting €6 million into the airline’s equity, which was taken from the €30 million in crisis aid obtained from the Estonian government.
Xfly states that the aviation market is “coming back fast thanks to successful vaccinations”, noting that its volume of flights has increased almost four-fold since the start of the year and airline has decided to re-introduce its E195s.
“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.
Xfly is a 100% subsidiary of NAG, which is owned 100% by the Republic of Estonia. Post pandemic Xfly still has contracts for 14 aircraft (six ATR72-600 and eight CRJ900) and the organization has been adjusted to 300 employees. As a preparation for expected growth during the winter 2021/22 and next summer season Xfly has decided to re-introduce the Embraer E195.