Financial Results
Since its transformation to a joint stock company in August 1992 ČSA never paid dividends. The sale of a minority share to Air France was a fiasco leading to withdrawal of the French airline, subsequently Antonín Jakubše and Miroslav Kůla managed to stabilise the company and gradually enlarge its fleet. In September 2003 Miroslav Kůla was fired. New CEO, ex-minister Jaroslav Tvrdík, agreed with the unions to increase wages by a third and announced "unprecedented" enlargement of the fleet. In 2005 the financial situation sharply deteriorated. Even though sale of two ATR planes improved the operating result by CZK 198 million, the operating loss was almost half a billion Czech crowns and the Government of Jiří Paroubek replaced Jaroslav Tvrdík with Radomír Lašák. The airline generated further operating losses, profit CZK 2.1 bn from sale of almost all real estate and profit CZK 1.2 bn from sales of planes were not sufficient to offset them. In 2005-2010 ČSA generated operating loss CZK 3.4 bn, without the profit from sale of long term assets the operating loss would be two times higher. The gross margin did not even cover the personnel expenses.
| billion CZK | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2005-10 |
|---|---|---|---|---|---|---|---|
| Sales | 21.5 | 24.0 | 24.0 | 23.2 | 20.4 | 16.9 | 130.0 |
| Cost of sales | (18.3) | (18.6) | (18.7) | (18.7) | (18.1) | (14.3) | (106.7) |
| Gross margin | 3.2 | 5.4 | 5.4 | 4.5 | 2.2 | 2.6 | 23.3 |
| Personnel cost | (4.1) | (4.5) | (4.8) | (4.8) | (4.9) | (3.9) | (27.0) |
| Disposals of LT assets | 0.2 | 0.2 | 0.6 | 1.4 | 0.4 | 0.8 | 3.5 |
| Other (depreciation etc.) | 0.3 | (1.3) | (0.7) | (0.3) | (1.3) | 0.2 | (3.2) |
| Operating profit | (0.5) | (0.2) | 0.5 | 0.7 | (3.5) | (0.3) | (3.4) |
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