RPT-Czech Airlines sees swing to profit next year

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Czech flagship carrier Ceske Aerolinie (CSA) expects to swing to a 42 million crown ($2 million) profit next year after a 493 million loss expected for 2006, the company said on Thursday.

CSA is state-owned but is slated for privatisation, a plan that has been slipping back due to heavy losses last and this year.

The company said it had approved a 2007 business plan which included selling its cargo terminal and catering, which will help the bottom line.

It warned however that costs related to a new labour code taking effect in January could reach 180 million crowns, eating into the 2007 result.

It will also sell and lease back five Boeing 737-500 planes.

The airline said it would keep a fleet of 50 planes next year and hoped to raise sales on regular routes by 1.4 billion crowns.

[PRAGUE/Reuters/Finance.cz]