Increased fuel prices have brought losses to the Novaturo group

Increased fuel prices affected the company’s profitability, Novaturas reported on Thursday through the Nasdaq Vilnius Stock Exchange.

“In order to control the influence of the increased price of aviation fuel, in the second quarter of this year we applied a fuel insurance strategy, which was effective – we generated 103 thousand euro profit. However, we did not insure the entire planned flight program, and aviation fuel prices continued to rise significantly in the market,” the group’s head said in a statement. Vitaly Rakovsky.

According to the management’s assessment, due to this reason, the group of companies suffered about 2.2 million EUR loss, on average EUR 24 per traveler.

Profit before interest, taxes, depreciation and amortization EBITDA was negative and amounted to -750 thousand. euros, when a year ago it was 1.2 million. euros.

In six months, the group’s income reached 91.6 million. euros and were 3.1 times higher than last year at the same time.

Having assessed these effects of fuel price fluctuations and high market volatility, the company plans to increase the proportion of fuel hedged with derivatives and diversify hedging instruments.

“The shortened travel booking period and the fuel fluctuation fee included in the price of the travel package allow us to assume that the impact of the aviation fuel price on profitability is short-term,” the report states.

The group served 128 thousand this year. of travelers – according to V. Rakosvkis, as soon as the second half of the year began, more travelers were already served on the scale of the group of companies than in the entire previous year.

The group expects to be able to achieve the initial operational and profitability targets during the remaining months of this year, assuming that there will be no significant changes in the economic environment in the second half of the year.

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