Loss doubles expectations
Czech Airlines (CSA) has suffered a net loss of CZK1.83bn ($103m) in the first six months of the year.
Reports today (Aug 24) said CSA's half-year loss was almost twice as much as the airline had expected.
Reuters, quoting a Czech news website, said sales at CSA had fallen CZK1.5bn year-on-year to CZK9.5bn.
News website idnes.cz claims to have acquired internal documents detailing the losses which came from the state-owned airline.
It is thought the airline had suffered from a 9.7% year-on-year fall in annual passenger numbers and a drop in ticket prices.
CSA was unavailable for comment today but is expected to formally announce its financial report on Wednesday.
The Czech Republic government last week said it would press on with the sale of its national carrier despite the withdrawal from the bidding of Air France KLM.
But the announcement of a significant loss could make CSA less attractive to bidders and force the Czech government to lower its asking price.
The decision of AF KLM to pull out of the bidding for CSA leaves only a consortium of Czech companies Unimex and Travel Service as potential buyer.
The Czech government has also further extended the deadline for offers from July 13 to September 15.
The sale of CSA by the Czech state would amount to a major privatisation in central Europe.
Analysts believe that the AF KLM withdrawal could hit the price of the carrier which previously was said to be valued at about CZK5bn (€195m).
AF KLM pulled out of the bidding citing the current economic climate.
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