Montenegro Airlines posts €8 million loss in 2019


Montenegro Airlines has reported its 2019 financial results with the carrier increasing its net loss to 7.962.948 euros compared to a loss of two million the year before. The airline’s revenue stood at 80.7 million euros. It generated the most income from ticket sales, followed by taxes and charter flights. Its expenditure grew 7.5% to 85.2 million euros. Jet fuel was the biggest expense at 16.3 million euros, followed by taxes, operational aircraft leases and wages. The company counted 372 employees at the end of 2019. Montenegro Airlines has failed to turn a profit in years.

YearNet profit / loss (million €)
2014 9.5
2015 10.4
2016 11.5
2017 15.9
2018 2.0
2019 8.0

Late last year, the Montenegrin government adopted legislation “for the investment and consolidation of the national carrier” which foresees the allocation of 155 million euros to Montenegro Airlines over a six-year period. The law is aimed at preventing the indebted carrier from collapsing and going into bankruptcy. At the time, the government noted that 105 million euros would be used to cover the airline’s debt, while fifty million would be utilised for the acquisition of new aircraft. The state emphasised that the bankruptcy or closure of the airline would have a negative impact on the Montenegrin economy and its tourism sector. There have been calls for the legislation to be revised due to the ongoing coronavirus Covid-19 pandemic, which has grounded the national carrier since March 19. Last month, Montenegro’s Prime Minister, Duško Marković, commented on the carrier’s role in repatriating the country’s stranded nationals by saying, “This is the best response to the question whether we need a national carrier”.

Montenegro Airlines’ operational results improved in 2019 compared to the year before. It handled a record 657.416 passengers, representing an increase 1.9% on 2018. Its average cabin load factor stood at 71%. The airline operated a total of 7.798 flights. Recently, Vlastimir Ristić was named as the airline’s new CEO, after Živko Banjević resigned from the role at his own request following a three-year period. Montenegro Airlines is the second national carrier in the former Yugoslavia to post its financial results, with Croatia Airlines previously reporting a 10.7 million euro loss for 2019. Air Serbia is expected to make its financial performance public in July or August of this year.

Comments

  1. Anonymous09:04

    Why am I not surprised.

    ReplyDelete
  2. Anonymous09:05

    Disaster for an airline with 6 planes.

    ReplyDelete
  3. Anonymous09:08

    Waiting for the "Montenegro keeps winning" guy.

    ReplyDelete
    Replies
    1. Anonymous09:32

      you stole my comment

      Delete
    2. Anonymous11:50

      Or the "last true legacy carrier in exyu".

      Legacy in perpetual loss making.

      Delete
    3. Anonymous21:15

      It's funny how everybody is concerned how YM is a perpetual loss maker, but when it comes to the same thing and JU then the story is "but JU is very important for the economy"

      Delete
    4. Anonymous11:09

      It's even funnier how JU has to be dragged into every discussion and gets used as an official negative benchmark for other peoples problems and frustrations.

      Btw, JU is important to our economy. Best of luck with your airline!

      Delete
    5. Anonymous11:27

      It's hilarious how the above comment about JU is very relevant but then you disregard it in your comment. As important as JU is to the Serbian economy so is YM to the Montenegrin one, but YM gets a lot more criticism, why is that? JU isn't a profitable company, especially not now

      Delete
    6. Anonymous12:16

      I'm not sure why you continue to equate criticism about YM with JU specifically. As I said, you could have used any other airline or a collectivity of regional airlines, but you clearly picked on JU and brought it into your discussion. If you follow this blog regularly, you wold know that JU gets a fair share of bashing, on pretty much any post about it.

      As I mentioned, I wish you all the best with your airline. But please leave JU out of your venting as it has nothing to do with YM's bad results. there is not a single profitable airline in Europe at the moment.

      Delete
  4. Anonymous09:10

    Now with corona they can pump even more money in the airline.

    ReplyDelete
  5. Anonymous09:10

    8 million losses and tens of millions of debt.

    ReplyDelete
  6. Anonymous09:11

    Figures nota looking very well. I thought that they reduced the costs and made some internal structure changes. Does anyone know if Daliborka is considering retaking the airline CEO position? What is she doing know?

    ReplyDelete
    Replies
    1. Anonymous09:12

      She is the Chief Negotiator with EU for Chapter 27 - Environment. lol

      Delete
    2. Anonymous09:20

      Really?? Lol! Good for her then. I doubt she will be interested returning back. Wasn't YM 8n good shape during her leadership?

      Delete
    3. Anonymous09:21

      Yes, we really need her back her results are fantastic
      2014 ▼ 9.5
      2015 ▼ 10.4
      2016 ▼ 11.5

      Delete
    4. Anonymous09:22

      @9.20

      No, YM was not in good shape while she was the Director. It was catastrophic.

      Delete
  7. Since when is taxes considered income? What am I missing here?

    ReplyDelete
    Replies
    1. Anonymous09:34

      Probably subsidies.

      Delete
  8. Anonymous09:23

    Has YM ever made a profit?

    ReplyDelete
    Replies
    1. Anonymous10:38

      maybe the keeps-winning guy can enlighten us

      Delete
  9. Anonymous09:44

    crazy

    ReplyDelete
  10. Anonymous09:44

    Dear god. They have 6 planes and they manage to make such a huge loss.

    ReplyDelete
  11. Anonymous09:58

    Tokom cele prošle godine njihov PR je u saopštenjima naglašavao "nikada bolje rezultate", najčešće navodeći jedan jedini parametar, broj putnika.

    ReplyDelete
  12. Anonymous10:17

    This is a disaster and I don't see the situation improving any time soon. Especially not in 2020 when tehre won't be a tourist season.

    ReplyDelete
  13. Anonymous11:04

    This airline is a real joke, operating with 4 planes only, 372 employees on the payroll, and recording a 8 million loss in a good year as 2019 was... Government could have used that 155 euro million to start a new airline from scratch and buy 4-5 brand new Embraer 190 planes, hiring max 150 employees.

    ReplyDelete
    Replies
    1. Anonymous11:14

      A ko ce da ispija dojc i viski?

      Delete
    2. Anonymous12:11

      +1 anon 11.04

      Delete
  14. Anonymous12:08

    And they still owe millions other companies.

    ReplyDelete
    Replies
    1. Anonymous12:25

      Do we know to who they still own money.

      Delete
  15. Anonymous12:09

    Montenegro Airlines needs to change something fast.

    ReplyDelete
  16. Anonymous12:09

    It would be really interesting to see whether MGX is still leading JU on TGD/TIV-BEG vv flights in 2019.

    ReplyDelete
  17. Anonymous12:10

    Maybe this is why the CEO resigned?

    ReplyDelete
    Replies
    1. Anonymous12:11

      He left the sinking ship on time.

      Delete
  18. Anonymous12:12

    I feel sorry for all the hard working Montenegro Airlines employees. Restructuring will most likely include a wage decrease and dismissal of staff.

    ReplyDelete
  19. Anonymous12:24

    At the end of the day all of this will blow over and Montenegro Airlines will live another day... until the next (corona) crisis.

    ReplyDelete
    Replies
    1. Anonymous14:41

      It's been like that for years.

      Delete
  20. Anonymous12:50

    It's now time for JU to buy YM and form a common airline or having YM become a feeder. TGD can become a small hub or serving routes not served by JU. Something like LH groupe.

    ReplyDelete
    Replies
    1. Anonymous14:19

      two loss making airines?

      Delete
    2. Anonymous15:17


      But when the government takes charge of JU it'll all change.

      Delete
    3. Anonymous18:00

      Oh look, we can't have a single topic without someone bashing JU. First of all you can't compare the two. Air Serbia is actually serving a market that's big enough to sustain its operations and is now expanding into the transfer market which will make it even bigger. YM on the other hand is located in a country the size of two New Belgrade areas and served by two airports with an extremely high seasonality. If JU is smart which they are, they will stay away from YM at all cost.

      Delete
  21. Anonymous14:42

    How this airline is still flying is beyond me.

    ReplyDelete
  22. Anonymous14:43

    These guys just can't seem to catch a break.

    ReplyDelete
  23. Anonymous14:44

    all ex-yu airlines are cash sucking machines. And I mean ALL.

    ReplyDelete
    Replies
    1. Anonymous14:57

      Some more than others.

      Delete
    2. Anonymous15:22

      ...and they use different methods: OU with PSO lines, Wizz with route subsidies in SKP, Ryan and Wizz subsidies from airports in TZL and BNX, and then there is Air Serbia...

      Delete
  24. when Podgorica airport it be reopen?

    ReplyDelete

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