President "hopeful" Air Serbia will turn profit

The Serbian President, Aleksandar Vučić, has said he is hopeful that Air Serbia will post a profit for the previous year but conceded he has no precise data. "I hope they have turned a profit even though it is very difficult. People should be aware of this. If you exclude the transatlantic operation, I am certain Air Serbia is profitable. Even with the long haul service I hope they are in the black, which is terrifyingly difficult", he said. Responding to questions at a press conference, the President added, "I won't remind you how Montenegro Airlines, Croatia Airlines and others are performing. It is very difficult. I don't currently have precise information but since you [media] are insisting on this topic, I will personally prepare for a future press conference".

Air Serbia is yet to publish its financial results for 2017. The airline posted a profit for three consecutive years in 2014, 2015 and 2016. In 2014, the carrier's net profit stood at 2.7 million euros, which was followed by a 3.7 million euro profit in 2015. In 2016, upon launching its first long haul service, the airline's figures declined 77% with Air Serbia managing a 990.000 euro profit. However, such results are unlikely to have been achieved without the financial support provided by the government. Commenting on Air Serbia's flagship route to New York and the sustainability of the service back in April, the Serbian President noted, "Can you make money on flights to New York? Of course you can't. We will be able to do that in about a year or two when three to five years have passed since the route's launch. However, these flights are important for the country's and airline's branding and image".

Croatia Airlines and Montenegro Airlines are the only two carriers in the former Yugoslavia to have so far published their financial results for 2017. The Croatian carrier registered a record net profit of 3.6 million euros on the back of selling its five weekly slot pairs at London's Heathrow Airport, while Montenegro Airlines posted a net loss of 4.6 million euros, its smallest in five years. Adria Airways is yet to publish its figures for the previous year.

Air Serbia has undergone wide-ranging restructuring in an attempt to boost its key performance indicators, as it struggles to keep a lid on costs, growing competition, an over-inflated workforce and the winding down of state subsidies. The airline has taken steps towards restructuring its business by reducing its workforce in late 2017, transforming into a hybrid carrier, consolidating its destination network, putting on sale non-airworthy general aviation aircraft and retiring some of its ageing Boeing jets. The company's interim CEO, Duncan Naysmith, told employees in an internal memo in February that focus will be put on "net profit, the new fare structure, in-flight sales, additional services that bring in ancillary revenues, as well as other initiatives to boost efficiency".