Montenegro Airlines is finalising a draft of its recovery plan after the company posted a record 11.4 million euro loss in 2016. The carrier said that work on its long-term development strategy will be completed within the coming weeks and submitted to the government for approval. "The strategy will include an evaluation of the current financial situation in terms of debt, our position on the market, as well as the structure of our workforce. We will suggest several solutions for the future. Keeping in mind the airline's importance for the continued development of the transportation sector in Montenegro, we want the government to recognise the direct impact the company has on the tourism industry", Montenegro Airlines said. It added that a greater emphasis is being put on optimising its operations. "Ongoing optimisation entails the reduction of costs, but also defining the company's position on the market", it noted.

During the first quarter Montenegro Airlines handled 82.874 passengers, a decrease of 2.1% compared to the same period last year. However, its numbers improved in April when it carried 37.625 travellers, up 3.3%. "It is important to note that these results have been achieved following a series of operational issues in January and with just two to three aircraft compared to six last year. Advanced bookings between June 1 and October 1 show that revenue generated from ticket sales for this period has reached 6.8 million euros", the company said. The carrier noted that the expansion of low cost carriers onto the Montenegrin market is putting a greater pressure on its operations.

Airline	PAX	Change (%)
Air Serbia	453.859	▲ 8.1
Croatia Airlines	329.320	▲ 4.4
Adria Airways	227.588	▲ 8.3
Montenegro Airlines	82.874	▼ 2.1

Earlier this week, Montenegro's tax authority said it had rejected a tax restructuring program submitted by the carrier. Montenegro Airlines owes the state 15.4 million euros in tax and unpaid worker benefits. The carrier suggested for its debt to be reprogrammed and repaid over the next five years. However, the tax authority noted that, since the airline was a beneficiary of state aid in the past, it cannot approve the restructuring program under such terms. Despite the setback, the carrier said, "Even though the negative media reports are having an impact on our business, Montenegro Airlines would like to inform its passengers and partners that the company's operations are stable and all flights are running as per schedule".