The flag airline had not filed its statements within the term and in the manner prescribed by law since 1996, while Austral had a 14-year lag.
Aerolíneas filed its financial statements in due time and manner for the first time in 21 years, while Austral did so after 13 years. In 2017, the company’s revenue increased by 97% on a comparative basis with 2015, while losses were cut by 32%.
The steady reduction of the losses of the company are the reason why contributions made to the company by the Argentine Government waned. After a decade of an average of USD 678 million, such contributions were of USD 302 million in 2016, USD 183 million in 2017 and only USD 82 so far this year.
On Tuesday, May 29, the Meeting of Shareholders of Aerolíneas Argentinas and Austral approved the financial statements and the management of both companies for the year 2017. The statements for the year 2016 were approved in May, and the ones for the years 2014 and 2015 were approved in January.
Consequently, the company now enjoys a regular status in the registry, a situation which have not occurred since year 1996. In the case of Austral, the statements had not been filed within the appropriate deadline since year 2004.
“This is part of the President’s commitment to speak truthfully, and to make Aerolíneas a sustainable, transparent and leading company. It also consists in leaving the squandering Argentina behind. During the previous Administration, USD 700 million were apportioned to cover Aerolíneas’ deficit, enough money to build 15 airports. We brought down contributions of the state drastically and plan to pull them down to 0 in the next year. All this is possible because Aerolíneas is growing in the number of passengers, in connectivity, in the quality of service and has better prices and more planes. These accomplishments are the result of the brilliant work of a hard-working, diligent and committed team”, expressed Argentina’s Ministry of Transport.
The companies have the legal duty to file their financial statements because they are Sociedades Anónimas (corporations). Moreover, this boosts management transparency since, as of today, the accounts of the company can be consulted both in the Corporations Record Office (IGJ) and in the corporate webpage, where the full statements of the last years have already been published.
“This is the proper way to manage a state-owned company: by being accountable to all Argentineans who are, in fact, the owners of this company”, commented Mario Dell’Acqua, President of Aerolíneas Group.
Abbott Reynal, Aerolíneas’ General Manager explained that “One of the main achievements is having collected more revenue by putting planes where they should be and by reducing costs. Figures show that we have improved the quality of the operation and this is why people are choosing us. What makes us even happier is that we are doing more with less money from the Argentineans.”
The results were obtained by maintaining the investment that in 2016 amounted to ARS 2.92 bn. and in 2017 amounted to ARS 1.808 bn., without increasing the level of indebtedness, which went from 38% of the total assets in 2015 to 36% in the last year.
Aerolíneas Group income statement for the year 2017 shows income for ARS 39.028 bn., which represents a boost of 97% if compared to 2015.
The company registered a loss of ARS 6.312 bn., 32% less than the ARS 9.278 bn. of 2015.