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Cityjet books €163m gain from examinership

admin | June 3, 2022
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Airline service provider, Cityjet booked an exceptional gain of €163 million from its 2020 examinership, according to new accounts for 2021 and 2020 which show Cityjet DAC recorded a pre-tax profit of €408,000 last year. This followed a pre-tax profit of €133.5 million in 2020, which was due to the €163 million gain from examinership. In 2021, the firm recorded an operating loss of €5.09 million, while a pre-tax profit of €408,000 chiefly arose from an exceptional gain of €5.5 million from successful insurance claims and progress made in negotiations in relation to pre-examinership liabilities. The new accounts show Cityjet recorded revenues of €71.6 million for 2021, following revenues of €88 million in 2020. The directors stated revenues last year declined by 19 per cent due to the impact of Covid-19 on European travel. Pre-Covid, Cityjet recorded revenues of €230.65 million in 2019, when it employed 1,211 people. At the end of last year, a slimmed down CityJet post-examinership employed just 451, a reduction of 759 workers compared to pre-examinership and pre-Covid counts. Wet lease Cityjet now operates a fleet of 22 CRJ900 aircraft, the majority of which are under a wet lease contract for SAS Scandinavian Airlines, with aircraft and crews based in Copenhagen and Stockholm. Since 2018, Cityjet flights have been operated on behalf of customer airlines and the firm does not fly scheduled flights under its own brand. In March, the directors said the company had resumed its wet lease agreement with SAS, increasing the number of aircraft to bring activity levels back to expected levels following the Covid-19 pandemic. Last year, the majority of the airline’s revenues were recorded in Sweden (€69.28 million), with only €248,000 generated in Ireland. This compares to €3.28 million in Irish revenues in 2020. The accounts show the €163.1 million examinership gain included a write-off of loans of €126 million to connected parties, while trade creditors received a dividend of 1.25 per cent, resulting in a gain of €18 million for the company. Another €11.4 million was written off from subsidiaries liquidated as part of the examinership. Restructuring under the heading of staff costs in 2020 totalled €7.63 million, while staff costs last year totalled €25.2 million. The company received €4.15 million under the Government’s Employment Wage Subsidy Scheme (EWSS) in 2021, in addition to €2.7 million in Covid-19 supports in 2020. The airline’s other major costs last year included aircraft rental costs of €17.4 million and aircraft maintenance, materials and repair costs of €21.66 million. At the end of December 2021, the firm had a shareholders’ deficit totalling €21.56 million, while cash funds totalled €21.9 million.

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