Montenegro Airlines is set to post its worst financial result on record for the year 2015. According to the daily "Dan", the airline saw a net loss of 10.2 million euros last year, making it the least profitable national carrier in the former Yugoslavia. While the Montenegrin airline is yet to publish its financial results, and is known for doing so notoriously late (its 2014 financial report was published in December 2015), the numbers are on par with the disappointing figures it saw during the first six month of last year, when it recorded a 6.5 million euro net loss. The airline is also dealing with accumulated debt amounting to sixty million euros. In 2014, the carrier's net loss totalled 9.5 million euros. Montenegro Airlines says its financial report will be available following an independent audit.
In December, the Montenegrin government issued guarantees for a 6.5 million euro loan for the airline in order for it to refinance its liabilities. Furthermore, it wrote off 3.7 million euros of the carrier's debt. On January 21, Montenegro Airlines requested an urgent one million euro cash injection as a guarantee to the local fuel supplier and a further 1.2 million euros in order for it to make a payment to the Brazilian BNDES bank for the financial lease of an Embraer E195 jet. As a result, last month, the government swapped a 2.1 million euro loan to Montenegro Airlines for equity. The European Commission (EC) has requested information from Montenegrin authorities concerning state aid granted to the airline as part of its restructuring process over the past three years. Since Montenegro is not a European Union member state, the EC has no jurisdiction on state aid granted by local authorities. However, the Commission told EX-YU Aviation News that as part of the accession process, it monitors the Montenegrin State Aid Control Authority, which has approved several million euros worth of state aid to Montenegro Airlines over the past few years.
Croatia Airlines is the only national carrier in the former Yugoslavia to have published its financial results for last year, albeit preliminary. The airline recorded a net profit of 1.9 million euros. Air Serbia says its results will be published in the coming weeks and are currently being audited. However, according to the company's Chairman, the airline ended 2015 with a net profit and improved results on the year before. Adria Airways is expected to post a loss of some five million euros, although its figures are yet to be released. In February, Etihad Airways presented its plans to return Montenegro Airlines to profitability and improve its overall business, as part of the recent Commercial Cooperation Agreement signed between the two carriers. However, the agreement is subject to an investigation by the Montenegrin State Prosecutor, although the reason why has not been revealed.