p22 Air July3 30/6/09 13:39 Page 22
Air
Chris Gray
020 7921 8003
cgray@ttglive.com
For the latest news about flights, airlines and airports, visit ttglive.com/air
Profits plunge
40% in 2008
AVRO’S pre-tax profits dropped by 40% in the
12 months to August last year, according to its
latest accounts, filed in May.
The company made a pre-tax profit of
£178,000 in 2008, compared with £300,000 the
year before, but on a higher turnover.
Turnover for 2008 was £79.8 million, compared
with £65.4 million the year before, an increase of
22%. The number of passengers carried rose 11%
from 310,000 to 344,000.
Its gross profit margin fell from 3.9% to 2.7%,
which the company said was mainly due to the
increased cost of oil last year.
Vinales said passenger numbers and revenue Avro managing director Michael Vinales (centre) celebrates the company’s 25th anniversary with staff
so far for 2009 were also up year-on-year, in con-
trast to the rest of the market which was down.
But he said costs were also up and accepted
that margins were under pressure, although
Avro fears Turkey
he claimed yield on the most popular Gatwick
routes was relatively high.
Capacity had grown after the collapse of XL
last year as Avro put more seats into the eastern
2010 excess seats
Mediterranean markets to fill the gap left by XL.
Vinales added that the biggest danger for the
Seat-only firm celebrates its 25th anniversary this week but
rest of this year was that if late bookings did not issues warning about this year’s success story. By Chris Gray
start to come in strongly, Tui and Thomas Cook
might start “dumping” capacity on the market by TURKEY’S success this year has put it at risk of Gatwick, such as Turkey, Egypt and Gran Canaria,
selling seats as flight-only through their airlines becoming “awash with capacity” in 2010, Avro was particularly strong.
(TTG June 19). managing director Michael Vinales has warned. He predicted the level of demand was high
Speaking as the seat-only specialist celebrated enough to mean there might be a shortage of
its 25th anniversary on July 1, Vinales said capacity from Gatwick in July and August, so
Turkey had been the stand-out success of 2009 customers leaving booking late might not find
because the strength of the euro had made the bargains they were expecting.
eurozone countries so expensive in comparison. Gatwick bookings were coming in very late
Avro joined other airlines and operators in but at a higher level than would normally be
adding capacity to Turkey this year, but Vinales expected in the seat-only market, Vinales said.
said the industry had to be careful not to assume Manchester, Avro’s other main base, had not
such strong demand would continue in 2010. yet seen its normal level of late bookings.
If capacity remained the same but the pound Vinales claimed Avro was now the longest-
got stronger against the euro next year Turkey, surviving seat-only operator, which he put down
together with Greece, would have too many to its trade-focus, the support of privately-owned
flights on offer, he predicted. parent group Monarch Holdings, and the alliance
“Turkey is just right this year. It has a lot of with Monarch Airlines, which provides 90% of
Win a fam trip to the Algarve:
WIN
capacity because people want to go to a non- Avro’s flights. “Avro is for the trade and will
Avro is marking its 25th anniversary
by offering 25 agents a fam trip to
euro destination. In a normal year it would have always be for the trade,” he added.
the Algarve. Agents will be entered into
too much,” he said.
a hat for every booking made and the
“The fear is that next year Turkey will be ■ See next week’s TTG Knowledge Cyprus,
winners will go to Portugal in September.
awash with capacity.” Greece & Turkey supplement for an indepth
Vinales said demand on popular routes from assessment of the eastern Med market
22 03.07.2009
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