Adria to post loss in excess of €10 million for 2018
Adria Airways has submitted its audited financial report for 2018 to the Slovenian Civil Aviation Agency. The regulator extended the deadline for the national carrier, which was required to send the document by August 31. According to the “Finance” portal, the airline registered a net loss of over ten million euros in 2018, and it is likely to hover close to fifteen million euros. The company reported a loss of 5.4 million euros in 2017 and a 3.2 million euro profit in 2016. In a statement, the Slovenian Civil Aviation Agency said, “We will study the report and act in accordance with our mandate”.
The Slovenian branch of the multinational PricewaterhouseCoopers (PwC) was scrutinised by the Slovenian Agency for Public Oversight earlier this year over its auditing of Adria Airways' 2018 financial results. The financial report was referred to the Agency by the country's air regulator, which also monitors the financial sustainability of airlines registered in Slovenia, under the suspicion that Adria's financial statements did not accurately reflect its financial state. According to the “Siol” portal, it is believed that in its audit conclusion, PwC also expressed doubt in the validity of the carrier’s financial health. This primarily relates to dealings over Adria’s absorption of the STBE company through a merger and acquisition late last year. The move increased the airline's share capital and changed its ownership structure. As a result of the merger, Adria's share capital increased by 1.5 million euros to 3.28 million and its majority ownership (54.3%) was passed onto Stefan Beulertz, a lawyer residing in Malta.
According to media reports, Adria is believed to have registered a loss of over ten million euros during the first half of this year. Its passenger numbers have also declined, and the company has amassed debt of sixty million euros to creditors. Yesterday, all of Adria’s bank accounts were blocked. This does not mean that Adria has insufficient funds to repay its debts, but rather that creditors have made fund reservations on the accounts. Despite a pledge made in late June that it would be more proactive in communicating with the press, the company has made no comment on its financial woes or the status of its ongoing talks with a strategic partner.
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