Air Serbia aims for profitability in 2022
Air Serbia expects to break even or post a small profit in 2022 after two years of Covid-induced financial losses. “Air Serbia has performed relatively well during the pandemic. In 2021, we significantly improved our operational performance and even reduced our losses. This year we are aiming for profitability and we will continue to do so in the future. Air Serbia will continue to be the leading regional airline in the Balkans, and we aim to maintain our market share in Belgrade between 50% and 55%,” company CEO Jiri Marek told “Aero Telegraph”. . He added: “Rising fuel prices are taking their toll and we are not covered. As an airline, you can pass around 60% of the increase on to customers. So of course we suffer. But even at current fuel prices, we believe we can break even this year.”
Air Serbia recorded a loss of 77 million euros in the pandemic-hit year 2020, ending six consecutive years of profits. The result did not take into account the 100 million euro recapitalization planned by the Serbian government at the end of this year, which saw it increase its stake in the company to 82%. In 2021, the net loss was reduced to 21.3 million euros. Over the past year, Air Serbia has fully repaid its second and final loan to Etihad Airways Partners BV, a special purpose vehicle created by Etihad Airways in September 2015 to raise funds for itself and its partners. The loan was for US$63 million. Air Serbia is one of the sixty companies that receive state subsidies since it is classified as “of particular importance”. This year, the sixty companies are sharing between them 170 million euros in subsidies, although the exact amount each receives has not been made public.
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