Ljubljana, 21 November (STA) - The German financial fund 4K Invest will recapitalise Slovenian carrier Adria Airways with EUR 4m in the coming days, Adria said on Wednesday, noting that the injection would allow for the company's further development. In the first quarter of 2019, Adria is to raise equity capital by another EUR 10m.
The German fund, which has owned the airline since 2016, made the decision based on its firm conviction that the Slovenian carrier has a bright future, Adria said in a press release.
A recapitalisation had been demanded by the Civil Aviation Agency a while ago due to Adria's poor financial standing.
Adria Airways CEO Holger Kowarsch commented on the news of the EUR 4m recapitalisation by saying Adria had achieved "substantial" development already and planned to develop its potential in the future as well.
Kowarsch broke the news on the planned recapitalisation a month ago.
Since the 2016 takeover, Adria has almost doubled the number of planes in its fleet, hired almost 200 additional staff, invested in their training and expanded its network of flights to become a mayor regional carrier in the Aircraft, Crew, Maintenance and Insurance system, Adria wrote.
Adria posted a net loss of EUR 5.4m in 2017 after finishing in the black the year before due to the sale of its brand. Last year's negative result was attributed to rising fuel prices as well as the termination of cooperation with two European carriers.
The company announced last month it would not manage to get out of the red this year either, mostly due to high fuel prices.