REG - AS Air Baltic Corp - Covid 19 impact

Nabors IndustriesAnnouncement

12/03/2020 10:15

RNS Number : 9058F
  
AS Air Baltic Corporation
  
12 March 2020
  
 

 
12 March 2020
AS "Air Baltic Corporation"
airBaltic Statement on the Impact of COVID-19


Riga. Following the growing impact of COVID-19 to the industry, airBaltic has seen a decline in demand from passengers across the network and to destinations in Italy in particular. 
To ensure the safety of crews and passengers, and to mitigate the financial impact of COVID-19, airBaltic has temporarily suspended its service to Milan and Verona, until the end of April 2020, and to Rome and Tel Aviv, until the end of May 2020. 
airBaltic has a well-developed crisis plan for various economic and operational crises which might impact the company. On 28 February, airBaltic established an action group to regularly monitor and evaluate the developing situation and to decide on any further measures considered necessary.
As a major proactive measure, airBaltic intends to reduce its Q2 capacity by about 20% which will result in the temporary reduction of approximately 12% of employees. The company will seek voluntary solutions, non-extension of probation time, unpaid leave and termination. 
Due to the exceptional circumstances caused by the spread of COVID-19, it is currently impossible to predict the final impact of the outbreak. However, as at today's date, airBaltic has over EUR 110 million in cash and cash equivalents which is equal to approximately 20% of trailing 12-month revenues and the company is well positioned to withstand a significant market shock.
airBaltic will continue to monitor the booking situation and to act quickly to adjust flight schedules and policies where necessary in response to the developing situation. 
 
For further information, please contact:
 
Vitolds Jakovlevs, e-mail: Vitolds.Jakovelevs@airbaltic.lv, phone: + 371 6720 5447 
 
 This announcement has been issued through the Companies Announcement Service of Euronext Dublin.


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