Adria returns to profit after seven years

Adria Airways posts 2014 profit

Adria Airways recorded a pre-tax profit of 900.000 euros last year, making it the third national carrier in the former Yugoslavia to end 2014 in the black. It comes following a net loss of 3.1 million the year before and marks its first annual net profit since 2007. In a statement, the Slovenian carrier said its operating profit stood at three million euros while revenues fell 1% compared to 2013. Lower fuel prices, passenger growth and lower costs per passenger assisted with its improved financial performance last year, while a sharp decline in revenue on the Russian market had the greatest impact on its results. The airline also managed to reduce its debt by 22.4 million euros but it did not specify its remaining debt. Only last week, Bank of America Merrill Lynch purchased 6.3 million euros worth of Adria’s debt for an undisclosed sum.

Despite the number of flights declining from 19.509 in 2013 to 19.123 last year, the Slovenian carrier positioned itself as the third busiest airline in the former Yugoslavia, handling 1.112.857 passengers in 2014, up 8% on the year before. The number of operated charters grew by 13%. Recently, Adria’s CEO, Mark Anžur, said 2014’s performance was “somewhat disappointing”. “We planned for better results. In Europe, revenue per passenger fell by 7% in 2014, which is huge”, the CEO said. During the winter, Adria took out a bridging loan in order to stay afloat and concluded a sale and leaseback arrangement for two of its Bombardier CRJ900 aircraft in order to boost liquidity.

AirlineNet profit €
Air Serbia2.7 million
Croatia Airlines921.000
Adria Airways900.000

In 2015 the airline plans to increase revenue by 13% with the recent opening of a new base in Lodz and the launch of new routes from Ljubljana and Tirana. In addition, Adria is also eyeing improved cabin utilisation during the year. The airline estimates its passenger numbers will grow by 20% this year. Mr. Anžur recently said, “Increasing passenger numbers is one of the development focuses contained in our business strategy until 2020. To ensure that as many passengers as possible select Adria as their airline of choice, we are adjusting our prices to suit the broadest possible range of customers, as we endeavour to satisfy both business travellers and those who are looking for the cheapest fares”. Under the strategy, Adria hopes to carry two million passengers per year by 2020.

The encouraging financial trends come during the airline’s ongoing privatisation process. Recently, the state-run Slovenian Sovereign Holding (SSH), which is coordinating Adria Airways’ privatisation, selected Dutch-based consulting firm KPMG as a financial advisor for the sale of 91.58% of the carrier. During Adria’s last privatisation attempt in 2012, a total of ten parties submitted non binding offers. Up until now there has been no official word on who made these bids.

AirlinePAX (million)Change (%)
Air Serbia2.3 68
Croatia Airlines1.8 2
Adria Airways1.1 8
Montenegro Airlines557.000 5
B&H Airlines35.600 17


  1. Anonymous09:11

    I hope JU manages to handle at least 2.6 million passengers this year.

    As for JP and OU, I am in shock that the difference in passenger numbers is that small. My prediction that the gap will be even further reduced with all the new flights announced by Adria.

    1. "As for JP and OU, I am in shock that the difference in passenger numbers is that small."

      You're talking 800,000 passenger difference per year between Adria and OU.

    2. Anonymous09:17

      OU is limited in announcing new routes because of restructuring which ends this year, so next year should be great, don't worry

    3. Anonymous09:24


      Yes, I am very well aware of the 700.000 difference but at the same time the Slovenian market is dwarfed when compared to the Croatian one.
      But kudos to Adria for thinking outside the box.

    4. How many different airlines operate to Croatia compared to Slovenia?

    5. Anonymous11:21

      Doesn't matter because it only goes to show how incompetent OU is at securing a healthy share of its own domestic market.

    6. Anonymous11:22

      Also LJU is served by 11 airlines and it handles 1.3 million passengers which is really not that bad.

    7. Anonymous11:33

      OU 1,8 mio pax in 2015 vs.1,95 mio pax in 2012!?!

    8. "Doesn't matter because it only goes to show how incompetent OU is at securing a healthy share of its own domestic market."

      OU has close to 100% of the domestic market but I understand what you are trying to say and agree that OU could do more especially in the winter months. To be a successful company one has to create growth. It is very hard to rely just on organic growth which OU has done throughout because this type of growth is less secure.

    9. Anonymous14:36

      "100% of the domestic market"? How so?

    10. Anonymous15:21

      Q400 are you kidding?
      Domestic market powered by the State(PSO)!
      Equity sale!(A320,engines,land...),etc,etc and at the end 920.000 kn profit!!!!!
      Real big success!!!!!!

    11. Anonymous15:25

      Neka imaju i 1 kn profit vazno je da je u +

    12. Anonymous17:59

      @AnonymousApril 8, 2015 at 3:21 PM

      OU didn't sell any land or engines yet, land was an option if no solution could have been found in 2012 to OU's financial wows, OU manged to solve financial deal with EU imposed restrictions which end at the end in April 2016.

      Engines will be sold this year, for $10-15 million if two engines are sold, of single engine around $5.5-7.5 million, OU has 6 spare engines, 2 were deemed surplus to the requirement and are being sold. A deal with Airbus also includes a pair of brand new engines on top of 8 that are being bought as part of airbus Deal, what OU is doing is selling older engines and replacing them with brand new in 20167, a smart move if you ask me.

      OU plans to sell its current head office in Buzin, no idea how much that land and offices are worth, but they hope to get around $3 million for that. money from these proceeds will allow OU to build a brand new smaller head office at the Airport near bran new Terminal, on land which is owned by OU btw.

      Public service obligation or PSOs you're referring to aren't really cash cows for OU in fact if you look at OU's balance sheet this is where OU is bleeding money heavily.

      First four months Jan to April, OU accumulates all its losses, mainly to PSOs , in 2014 these stood at whooping 200 million kuna for first 4 months, or 50 million kuna per month, reason why some domestic services have been auctioned off to other operators in Croatia with smaller aircraft.

      OU made very small operating profit based on sales, this yea however OU plans to sell two engines which should generate around $10-12 million, which again will be used to pay for four brand new Airbus A319 that are joining the fleet in 2017.

      All this can be found if you look at OU's own website and look at their balance sheet.

      OU's strategy is to reduce workforce by the end of 2015 by another 60 staff, saving the airline another $1.5 million in pays and benefits, and maintain workforce at 850 level.

      longer term plans will see a fleet of 20 aircraft, something this blog has posted about and slightly larger workforce of around 1000, but these are medium to long term plans.

    13. Anonymous18:03

      kuna po kuna medved

    14. "100% of the domestic market"? How so?

      When talking domestic market I am referring to flights within Croatia for example Zagreb - Split or Zagreb Dubrovnik. The only competition they have here are the ECA Twin Otters and Trade Airs EMB 120.

    15. Anonymous13:18

      Thks PR OU for explanation,bath wrong!
      Maybe it is not the same web page with mentioned balance sheet!!!??????!!!
      We know the role of PR,and,of corse,difference between pr and the truth!

  2. Anonymous09:18


  3. SimpleMaths09:26

    Ex-YU airlines and their phony profits. All of them, no exception.
    A good morning laugh, that's for sure.

    1. Anonymous09:47

      Баш сам се питао колико ће времена проћи пре него што се појави сличан коментар.

    2. Anonymous10:14

      Well, it is an undeniable truth that JU got a EUR 16M subsidy from the Government (forcing state owned companies to forgive debt). And this is something that will happen in 2015 and 2016 as well. So, no real profits from JU in the (foreseeable) future.

    3. Anonymous10:41

      Као порески обвезник сматрам да је ово заправо у реду и да мени не смета што се моје паре користе за ревитализацију нашег националног авио превозника. Посебно што ови попусти истичу 2016. године.

      Мене много више брине што се моје паре бацају у друге црне рупе попут Железаре или ЖТП-а.

    4. Anonymous10:43

      According to the contract, this kind of subsidy will last until the end of 2015. (or until the beginning of 2016., as you wish).

    5. Anonymous11:22

      @AnonymousApril 8, 2015 at 10:41 AM

      Nemjee you can sign yourself.

    6. 11:55 AM11:56

      @10:44 AM
      So, you concur that these are phony profits then.

      It costs a dollar to produce a nail and you sell it for 95 cents. You lose 5 cents on each nail, but the central government covers 10% of your production costs, so you're profitable. Sure! That's until the government decides to switch off the life support machine. Thanks but I won't be investing. Keep all of your phony profits.

    7. AnonymousApril 8, 2015 at 11:22 AM

      Huh? Just because I post in Cyrillic doesn't mean every Cyrillic anonymous post has to be mine. Unlike you I have no problem posting using my nickname.


    8. Anonymous13:07

      Nemjee we all know it's you.

    9. Anonymous13:52

      До сада и врапци знају да влада није имала кеша да отплати све јатове дугове 2013 и да уместо тога даје ограничене субвенције. Ко то и даље не разуме прави будалу од себе.

    10. Anonymous14:42

      Please stop embarassing yourself, you're making it only worse.

    11. Anonymous15:32

      Bolje da daju subvencije ASL nego na ostale gluposti. I Gospodine potpisite se.

    12. Anonymous17:00

      @Anon at 2:42

      Only one embarrassing himself here is our regular ASL hater poster, refusing to face the facts. Conspiracy theorists have been soundly defeated here with plethora of evidence on numerous occasions. Must be tragic living in your world of hurt.

  4. Anonymous09:46

    ex yu airlines FAIL! Not!

  5. Anonymous10:17

    Don't know if there are any rumors, but Belgrade Airport stock is exploding. It's currently trading at 1225 RSD (don't know the volumes) which is up 7% on the day. Yesterday, it was up almost 5%

  6. Matematika10:24

    haha, the profit of Air Serbia . Almost made me spill the coffee :D Good morning!

    im glad for Adria , finally !

  7. Anonymous10:31

    Ya Lodz will help a lot.

  8. Anonymous10:50

    Operating margins for listed European airline companies (% of revenue) 2013 and 2014:

    Ryanair at #1, Wizz Air at #2.

  9. Anonymous11:27

    Adria Airways profit made on paper.
    Plus minus ooohhh we have profit.
    To much master degrees in economy over there.
    Bu just on paper ex Yugo style.
    So no serious buyer for Adria.

    Leased airplanes (they don't own them) -yes it's a practice-
    but Adria has no LIQUID money to pay the hotel for pax stranded at the airport (even when it's the pax right to have it paid), Adria has no money for re-fueling (out of home bases), Adria has no money to pay own workers salary till the very last day they must do it.

    Bullshit Airline
    just PR is good when on work

    1. Anonymous13:12

      Adria Airways's Balance Sheet was audited by International Audit Company. With such auditor it is no chance to manipulate nowadays. So Anonymus 11:27 do not bullshit :)

    2. Anonymous13:53

      Like Enron, which was also audited by International Audit Company. Absolutely no chance for manipulation... :)

    3. Anonymous15:45

      Do not compare Enron vs Adria as Adria has no impact on the world economy ... Adria is about to be sold soon and it is still under the strong surveillance of many parts: possible investors, buyers, EC. I belive that in this stage no company would afford to adjust it's balance sheet

    4. Anonymous15:51

      I can not understand the way of mind set. If someone is doing good than must be somthing wrong. I also can not understand that so many people ca not say "bravo" or "greate job". No, it is always so that good for someone else is bad for me. So very balkan way of thinking.

    5. Anonymous21:41

      OP is right. Just wait and see. So sad.

  10. Anonymous13:07

    Why is LH1730 (MUC-SJJ) being diverted to BEG as we speak? It's an A320 (D-AIZM)

  11. OT,

    Notice LOT has been sending the E170 to Zagreb. Also at least 1 day last week there were 2 flights operated in one day.

    Must be doing really well!

    1. Anonymous14:25

      Yep LOT is doing well in Zagreb, they had 74% in March which is quite slow for Zagreb and in general, 80% LF on Zagreb - Warsaw is quite probable in April even with E170, although E170 has about same capacity as Q400, also they plan to phase out E170s by end of 2016.

      LOT E170 is configured for 70 pax and Q400 for 78pax, unless you've mistaken E175, E175 has 82 seats, 4 more seats than their Q400s

      May-October should be interesting for LOT on Zagreb - Warsaw route, I predict they'll be sending E175s on a daily basis and E195s on busier days.

    2. Anonymous15:10

      Yup, if they don't cancel the route that is.

    3. Totally forgot that the E170 has less capacity then the Q400.

      My bad.

    4. Anonymous19:02

      This is very strange as prices are crazy. More than 250 Eur for return flight. Do they rely on transit pax?

  12. Anonymous14:40


    Would BEG/INI - BTS work for Wizz or Ryanair ? Apart from O&D passengers, Ryanair flies to many destinations in Europe as well


    1. Anonymous14:53

      SKP-BTS would be a good test for that.

  13. Anonymous15:23

    Neverovatno koliko su ljudi ljubomorni na Aviokompanije samo zato sto su ostvarile profit pa ne mogu da ih pljuju.
    Steta sto ADR zapostavlja LJU.

    1. Anonymous15:26

      A kako zapostavlja? Otvoraju dve nove linije ovog meseca, a prosle su otvorili jos dve.

    2. Anonymous15:54

      Mnogo bi bilo bolje da nemaju toliko baza nego da se fokusiraju na 2 barem ja tako mislim.

  14. Anonymous16:31


    Have just noticed in Amadeus that QR increases ZAG - DOH to daily service from end of JUN.
    FZ also increases DXB to 4 weekly from next winter schedule (so seems not only during holidays).

    1. Anonymous16:59

      Wow. Not.

    2. Anonymous17:07

      Why 'not'? It is in reservation system, not in my head.

    3. Anonymous17:25

      Starting from June Qatar goes daily Zagreb-Doha and FlyDubai starting from winter 4 times per week from Zagreb to Dubai!
      Also Air Croatia 3 times per week Zagreb-Nurnberg!

    4. Anonymous20:17

      Possible new route starting from June: Zagreb-Podgorica

    5. Anonymous21:57

      YM is negotiating with EY for partnership, so I wouldn't take this news seriously. Probably used for just some kind of pressure on EY

  15. UNOFFICIAL statistics for March 2015 ADRIA AIRWAYS

    4% more sceduled flights and 19% less charter flights; overall 2% more flights than last March
    13% more scheduled pax (71725) and 20% more charter pax; overall 14% more pax than last March

    55 pax per scheduled flight (up 8%) and 66 pax per charter flight (up 48%)

    Over all in first 3 months of 2015 Adria transfered 8% more pax on the same number of flights operated than last year same period.

  16. Anonymous17:03

    Air Croatia to Nurnberg and Mostar from June

  17. Anonymous17:09

    OT: When will Air Serbia decide on engine choice for A320NEO order? PW seems like a frontrunner at this point. CFM will soon have a first flight so potential customers will hopefully get early access to PW vs CFM actual data.

  18. Anonymous17:47

    Does anybody know why today there are 3 flights to Munich today while a few days back I saw only 1. I am still confused at how LH schedule looks. On other days there are 2 flights with a 3 hour gap and no evening nor morning flight.

  19. Anonymous21:07

    i could not find financial reports of Air Serbia on their Corporate webpage. 2012 is the latest disclosure. What is the source for 2,3 million ?

    1. Anonymous21:16

      *2,7 m

    2. Anonymous21:17

      Visit the site of the Serbian Business Registry Agency for reports after 2012.

    3. Anonymous01:51

      Naj lakse je pljuvati po necemu a ne proveriti stvari.

  20. Anonymous22:52

    Any news on AB flights to Dusseldorf? Hopefully this will not be a big fuss for nothing.


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