AZAL's losses amount to 90% of its assets

Baku/18.05.22/Turan: State-owned Azerbaijan Airlines has officially released financial reports for the first time. The audited reports (Deloitte & Tuoche) for 2019 and 2020 are still available, according to which AZAL's losses (AZN 1 bln 764 mln) at the beginning of the last year made up 90% to the Airline's assets.

In 2020, owing to pandemic of coronavirus COVID-19, direct income of the national airline dropped from AZN 1 bln 8.400 ($593.1 mln) to AZN 335.2 mln ($197.1 mln). To compensate for the losses caused by the pandemic, the government paid to the airlines a total of over 232 mln manats in subsidies for the year. At that, the operating expenses of AZAL for 2020 exceeded AZN 540 mln ($317.6 mln).Taking into account the financial costs, exchange rate differences, as well as accrued tax on profits, the loss of AZAL for 2020 made up AZN 76.4 mln which is down by 3% from the previous year.

Liabilities of AZAL for January 1, 2021 amounted to AZN 2 bln. AZN 758 million, which is 39.4% more than its assets. Debts on loans and financial leasing in the debt portfolio make over AZN 2.5 bn. Negative capital of the airline reaches 780 mln AZN.

The report says that AZAL had AZN 383.2 mln in revenues for the first 10 months of 2021. -08B-