CSA reports widening losses

Czech Airlines reported widening losses on Tuesday. Its first half losses widened to 773 million koruna (27.5 million euros, 35.4 million dollars) from 533 million koruna in the same period last year. The company is now expecting a shortfall of 17.5 million koruna for the full year, equal to its 2005 loss, according to company chairman Radomir Lasak. Lasak ascribed the company's problems to a recent dramatic surge in capacity undertaken in the absence of preparation and necessary restructuring, rather than to a hike in oil prices. The airline is hoping to return to profit in 2008 following a sweeping restructuring which has been in place since the start of the year. The initiative calls for a 10 to 20 percent reduction in personnel.