Estimation of 1.007 million euros loss of Latvian air Navigation Company

Estimation of 1.007 million euros loss of Latvian air Navigation Company

The company responsible in Latvia for air navigation JSC Latvijasgaisasatiksme (LGS) worked with turnover of EUR 5.617 million, which is 18.2% less when compared to the same period of last year. The company’s losses were EUR 1.007 million, according to information published by the company.

In the first three months of 2020 LGS serviced 53 268 flights, which is a 15.6% decline when compared to Q1 2019. The decline is associated with the global COVID-19 pandemic. At the same time, the company’s revenue from air navigation services in Q1 2020 reached EUR 5.559 million, demonstrating a decline of 18%. The government’s report mentions that after completing revenue and expenditure volumes, operative losses in Q1 2020 are estimated at EUR 1 007 002.

The government’s report mentions that in April the capital of LGS was increased by EUR 6 million.

Because of the reduction in the number of flights, which was caused by COVID-19 pandemic, revenue has declined considerably in Q2. LGS has assessed its financial situation and there are no signs of any problems for its continued operations once the state of emergency is over.

In Q1 2019, the turnover of LGS was EUR 6.865 million and profits – EUR 584 440.

Last year LGS worked with turnover of EUR 30.764 million, which is 1.8% more than a year prior. The company’s profits had reduced 24.1% and were EUR 2.457 million.

LGS is owned by the Latvian state. Its duty is providing aircraft with air navigation services.

Pic Credit: https://commons.wikimedia.org/wiki/File:Air_Baltic_B735_YL-BBF.jpg

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