Air Serbia eyes 45% of pre-pandemic traffic this summer

Air Serbia expects to be operating up to 45% of 2019 traffic levels this coming summer season as the coronavirus pandemic continues to rage across the world. The figure would be above the industry average now being forecast by the likes of the International Air Transport Association (IATA) and Eurocontrol. Speaking at yesterday's CAPA Critical Thinkers summit, Air Serbia’s General Manager for Commercial and Strategy, Jiri Marek, said, “We currently operate around 38% of 2019 capacity. It's slightly above the EU average but we will of course optimise if necessary. What we foresee for Q1 is that we will more or less operate around those 35% - 38% of capacity. This is what we really manage to do on a daily basis”. He added, “We have a couple of scenarios for the summer but those might dramatically change depending how the market evolves, what the restriction will be and, also, if there will finally be some coordinated approach, because it's a big jungle out there now to understand what restrictions are enforced by which country. Obviously, we will try to flexibly adjust ourselves to it, as we have been successfully doing so far. Even during 2020, we've always operated above the average compared to the rest of the EU with higher KPIs [key performance indicators] achieved in terms of load factor. So, at the moment, for Q2, we will most likely be around 40% to 45% of 2019 traffic levels”.

Mr Marek noted that travel habits are changing which has resulted in Air Serbia making quick adjustments to its network and capacity. “All bookings and demand are now usually happening within ten days of departure. So, it's more critical how you manage your network now in a very quick and flexible way in order to adjust to fluctuating demand because regulations are changing at very short notice, which has a strong impact on demand. Flexibility is key”, the General Manager for Commercial and Strategy said. He added, “We had to completely reshape and change our network and concentrate on the key days of the week when we still want to have decent connectivity. There are some days where basically we are operating at almost 80% to 90% of 2019 levels, but there are also days where we hardly have a flight”

Air Serbia’s share of connecting traffic has declined considerably and now accounts for around 30% to 35% of total passenger volumes. “It's significantly lower than what it to used to be because connecting traffic is difficult to manage since some countries are imposing different restriction for transfers, so not only for those entering a country, but also for those transferring through certain countries. However, flexibility gives us a real advantage in maintaining decent connectivity. This is also visible in our aircraft deployment. Sometimes we are sending ATRs to Berlin, which is typically a jet route, just in order to maintain connectivity and allow people to transfer to their final destination within our region”.

Mr Marek said that entry restrictions into the EU for Serbian citizens continue to seriously affect the carrier. “We've already been heavily impacted by these restrictions. So, we already had to adjust through the course of last year to something which we call ‘really essential travel’. Basically, those people that have to travel will travel, or people with dual nationality or a residency permit in a foreign country will travel. However, my view is there will be new opportunities coming up. Whoever reacts faster, with greater flexibility and is more agile to changes happening on the market will be the winner. We continue to have the long-term ambition to serve the wider region and beyond and continue to be the leading regional airline in Southeast Europe”.