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West Atlantic in debt for US$6 million in 2015 despite higher revenues

GOTHENBURG's West Atlantic, formed in 2011 following the merger the West Air Group based in Sweden and Atlantic Airlines based in the UK, has gone into the red from a US$1.3 million profit in 2014 to a loss of $6.1 million last year.

Revenues increased 13.7 per cent over the previous year to $173 million, but the integrated mail and express carrier encountered costly setbacks in 2015, according to Air Cargo World.

Over the course of the year, West Atlantic undertook almost 27,000 flights across a network of 50 scheduled destinations, mostly in support of national postal services and integrators.

"During 2015 we continued to grow our company, for the second year in a row with double digit revenue growth from commercial success in the B737 and B767 markets," reported interim CEO and group president Fredrik Groth.

However: "Simultaneously, we experienced a decrease in the demand for less than eight tonnes payload capacity aircraft driven by market consolidation of volumes, which resulted in a reduced operation within this payload segment for 2016," Mr Groth continued.

"Looking ahead all focus is directed to being customer focused, improving our reliability, simplifying our operations while ensuring sustainable levels of profitability. While we have suffered a difficult second half of 2015 and start to 2016, the company will emerge stronger and I expect that we will soon be back again as the preferred supplier in Europe for our services," he said,

Demand for capacity on West Atlantic's Boeing 737 and 767 fleets was supported by the group's placement of two B737 and three B767 aircraft in operation during the year, thus contributing to the carrier's double digit revenue growth, London's Air Cargo News reported.

The group saw a significant decrease in demand for its low capacity aircraft, those of less than eight-tonne payload, however, a trend driven primarily by consolidations of shipments requiring higher capacity aircraft.

A major cost-reduction program is also underway to put the group in a stronger position to win new contracts and return to profitable growth.

"While we have suffered through a difficult period recently, the company will emerge stronger and I expect that we will soon again be recognised as the preferred supplier in Europe for our services," he said.