Air Serbia saw its revenue from the sale of services beyond a basic flight ticket increase 402.7% last year, despite a general drop in the number of carried passengers. The airline has continued on a similar trajectory so far this year. The so-called "unbundling of fares" has been one of the main pillars of the carrier's transformation from a full-fare into a hybrid company. The airline pocketed 3.1 million euros from ancillary services in 2018, up from 619.000 euros the year before. Air Serbia said ancillary services achieved their best result to date this June, with the projected budget exceeded for the third time in 2019. Products contributing most to the improved result this year was "Plusgrade" - a newly introduced online bidding service for upgrading from economy to business class, then additional luggage, as well as seat selection.
The airline previously said it would put an even greater emphasis on merchandising in the future in order to drive up revenue. "Traditional commercial approaches are no longer sufficient in making an airline competitive enough to ensure its long term profitability. Passenger numbers are booming, competition has intensified, and low cost carriers have made the aviation industry even more dynamic and tougher than ever before. But most importantly, with flights more affordable than ever, travellers are paying more attention to factors outside of price that differentiate airlines", Air Serbia said. It added, "It’s all about unbundling the traditional airline product proposition, and allowing travellers to create or choose their own journey based on their travel styles and preferences. It’s all about making these packages simple and easy to understand for both the market and the sales network. And in short, it is all about offering the right service proposal to the right passenger at the right price at the right time in the right sales channel".
Air Serbia's ancillary services include: advance seat reservation, excess baggage, priority baggage tagging, Premium lounge passes, fast track, priority boarding, meet & assist, on board special moments celebration, priority check-in, children travelling alone, travelling with pets, sport equipment transport, on board wi-fi, pre-paid meals, extra seat reservation, gift vouchers, Plusgrade, Elevate Deli & Bar and inflight duty free. Despite increasing this revenue stream, customers have criticised the airline for charging extra for a number of services previously offered as part of a standard fare. Last year, the world's ten busiest carriers collectively took in 31.3 billion euros in ancillary revenue.

Comments
I don't understand why they don't clarify this on their web page.
As far as I understand, for all other airports this fee is not applicable, ie. it is free of charge for all passengers.
https://www.airserbia.com/en/information/pre_flight/check-in/check-in-at-the-airport
LOL, sure!
Economy LIGHT: Airport Check-in 10 EUR
It seems they don't know what they are doing.
"Plus Grade" is not unique to Air Serbia (of course names are different for different airlines), its a way to offer business class to more potential customers.
Aviolet must be converted in their LCC división too...
From the other side they need to lower the prices to Berlin because easyJet is flying there. Same logic, but in this case it looks like nobody complained :-)
And it's not even put side by side with the other important figure - how much less money was earned from sales of basic flight tickets, now that they are supposedly cheaper.
This kind of statistics taken out of context don't mean much in the bigger picture.
boy, do they know how to paint the picture.
Of course that better opinions will be given for boutique concept but in that case this company would be needed much more state support. And we know here all what kind of comments are coming anytime when some state support gets mentioned.
So in order to be profitable or to be close to it this company must charge additional costs. SImple as that.
Does somebody have thr same issue with different company?
Air Serbia provides possibility of 1 IATA measures hand lugagge and Wizzair would charge for it.
Air Serbia has FF program, Wizzair does not know what it is.
Air Serbia offers connecting flights, Wizzair is afraid of them
Air Serbia at least offers free water and chips on their flights, in Wizzair you need to pay for it.
And if it happens that Wizzair can't fly due to the technical reasons this is what happens
https://www.kurir.rs/vesti/drustvo/3292589/viz-er-ostavio-srbe-na-cedilu-u-parizu-100-putnika-ukljucujuci-i-majke-s-malom-decom-let-cekali-17-sati-bez-hrane-i-smestaja-pa-za-srbiju-krenuli-autobusom-kurir-tv
They have quite often promotions on their web site while Wizzair is ripping off especially to the airports like BVA that is soo far away ffrom Paris, but they charge like they arrive to CDG. And they are called ULCC? Funny!
It seems you missed something
https://www.kamatica.com/vest/unapredjena-usluga-u-biznis-klasi-air-serbia-e/57539
If you cut the route you can't expect more passengers.
So, do not worry business class will be booked with JU especially now after it has been improved
Times have changed guys and so is JU. I personally don't find any problem of JU changing its business model so it can be more competitive.
It looks like that new destinations like BCN, MAD, KRR etc have good results so we might see passengers number increasing. It will surely push BOB to be even more successful on JU flights
Taking the bus is a privilege, not a right. If you can’t afford bus ticket, just walk there.
Right?
They really know what they doing and they have turned tables around when it comes to strategy.
The new network is just what was missing, so they should be milking it in not more than 2 years.
Compared to all of these loss makers across Europe, to have an airline that is so close to be in plus is astonishing.
Well done Ju!
but, they start from a low base, or non-existing base
(as far as i know only ancillary revenue was BoB on aviolet),
then they introduced this, and of course that KPI will fly
something on the lines of "satisfactory results on ancillary revenue" would be more proper than indicating 4x growth. it's ridiculous to play with the numbers like that
Month ago, there was another statement regarding same stuff, fluffy, like "we are making huge improvements" but no any info to sustain it. And it was terrible, people didn't believed them, call them liars etc.
This is how it should be done, and to be honest, every other company would do it in similar fashion. Thumbs up for Air Serbia PR department, big improvement in just one month ;)
If fuel costs remains more less the same amd there is no huge economic crisis some profit could be achieved in appprox 2 years time as
- JFK is close to turn to be profitable
- JU is opening new routes and big majority of them are profitable (some of them even increased few weeks after launching like BCN)
- loss has been decreasing year after year in previous 5 years and it is expected to follow the same trend
- huge number of highly profitable charter flights (increase in 2019 was around 40% and expected to grow in next years). They bring nothing but pure cash
- BOB revenue significantly increased
- service in business as well as in economy is improved (no more cost cutting measures)
All these signs show to me that JU is on the good way of recovery and I wish them all the best!
In this scenario you proceed to baggage drop off like you made self check in with signature of that helping personal that machine is not working.
No, basically like British Airways.
Are they going to take the bus instead? Numbers show they ARE coming back and they are getting used to paying for additional services, just like at many other airlines. It's a crushing defeat for those that criticized Air Serbia switch to this model. It is actually working.
Petar you have been shown time and again you don't have understand commercial aviation. Have you heard of additional bag fees? Fees for pets, oversized bags, UM (kids) etc? Those are just some examples of ancillary revenue that existed for decades.
Potential recession will only affect JU but not any other carriers? Nice story, bro.
Once the debt is payed off, which will be in a few years, they will run a pure profit.
Even this “loss” they are making right now because of the debt they are paying off, are nothing compared to the losses of many European flagcarriers that taxpayers are cashing out every year.
I am actually very pleased with JUs economy.
If Easyjet would open Paris-Orly of course Wizz would be forced to lower their price .
If you have no answer, then simply don't reply!
- unreasonable baggage fee if you have a light fare
- not enough options for buy on board food
- they can have more local Serbian and creative products for buy on board food
- no options for vegans/fasting meals or sandwiches
- they don't allow for a complimentary special meal selection on business class flights in Europe over 1.5hrs! (every airline that I have flow with in business class allowed me to request a special meal if there was a meal offered)
- Air Serbia lounge in Belgrade closes too early in the evenings
- Because of the above two points, I will never take a business class flight with them
Even in JAT times i flew with them standby, e.g LCA-BEG when JU was flying TLV-LCA-BEG!
- not enough options for buy on board food
I will never take a business class flight with them
Business class passengers get food and baggage fee included, so why complain about them? If you are such a big business class traveller, why do you care about light fare? Pathetic.
https://globalnews.ca/news/5821441/passengers-told-to-wait-11-days-for-next-plane-after-swoop-cancels-kelowna-to-winnipeg-flight/