Air Serbia has reported a loss of 21.3 million euros during the pandemic-stricken 2021, an improvement on the year before, when the loss amounted to just over 77 million euros. Revenue generated from scheduled flights amounted to 145.9 million euros, while charter services generated a further 37.7 million euros. The carrier’s biggest expense was aircraft maintenance, amounting to 42.4 million euros, followed by handling costs, which set the airline back seventeen million euros. During the year, Air Serbia repaid in full its second and final loan to Etihad Airways Partners BV, a special purpose vehicle set up by Etihad Airways in September 2015 to raise funds for itself and its equity partners. The loan amounted to 63 million US dollars. The airline did not take out any new loans last year.
During 2021, Serbian nationals were restricted from entering many European markets due to the Covid-19 pandemic, impacting the airline’s performance. In its 2021 financial report, the carrier said, “Following the complete suspension of commercial operations during the first quarter of 2020, demand for travel in the Republic of Serbia began to gradually recover in May 2020 and continued to do so throughout 2021 but is still limited, which is why full recovery is dependant on the stabilisation of air travel in Europe and the world”. It added, “The company’s management focused on reducing risks through restrictive cost management, optimising capacity in the face of a historic decline in demand, cash conservation by reducing planned investments, negotiations with suppliers for improved payment terms, implementing initiatives to reduce working capital and optimising human resources”.
| Year | Net profit / loss (million €) |
|---|---|
| 2013 | ▼ 73 |
| 2014 | ▲ 2.7 |
| 2015 | ▲ 3.9 |
| 2016 | ▲ 0.9 |
| 2017 | ▲ 16.0 |
| 2018 | ▲ 12.3 |
| 2019 | ▲ 9.5 |
| 2020 | ▼ 77 |
| 2021 | ▼ 21.3 |
From January 1, 2021, until December 31, 2021, Air Serbia was forced to cancel 4.933 flights because of the pandemic, which resulted in reduced revenue. In comparison, during 2020, the carrier cancelled 23.079 flights. As previously reported, the Serbian airline achieved solid operational results in 2021, with its figures above the European industry average. It carried 1.586.665 passengers last year, representing an increase of 83% on the year before, with the airline’s average annual cabin load factor standing at 64%. The carrier’s traffic volume grew 39% compared to 2020 but was down 35% on the pre-pandemic and record-breaking 2019. Its best performing routes in 2021 were New York, Moscow, Tivat, Paris, Podgorica, Zurich, Istanbul, Amsterdam, London and Athens. During 2021, Air Serbia Cargo registered its best results on record with its performance surpassing the pre-pandemic period by as much as 55%.
That's actually great - if you take into account the number of aircraft, and that covid was there for half of the year
ReplyDeleteA bit more than half the year, especially at the end of the year when many European countries were closed again,
DeleteFirst five months of last year were very difficult.
DeleteDon't forget that up until a few weeks ago many key European markets were off limits for Serbian tourists. I think Germany removed all restrictions about three weeks ago.
DeleteI am not sure but I think Italy and France still have them.
No restrictions in Italy.
Delete^ From recently, but there very much were restrictions for several months this year.
DeleteSerbian tourists couldn't enter Italy by air for almost two years, I'm just saying there are no restrictions at the moment.
DeleteCovid is still here...
DeleteI expect positive results for 2022
DeleteBetter than I expected
ReplyDeleteHow much did you expect?
DeleteI expected it to range between 30 and 50 million.
Delete"The carrier’s biggest expense was aircraft maintenance, amounting to 42.4 million euros"
ReplyDeleteFleet renewal would help bring those costs down.
It is possible that more maintenance work was done than usual since many planes were on the ground. I know many airlines moved forward big checks and works.
DeleteAlso getting planes in flying state after spending months in storage probably would have increased costs.
DeleteJU didn't have aircraft grounded for long periods in 2021. A couple of aircraft were sent back to lessors leaving JU with a smaller fleet. B733's were also retired. I'm sure that these 2 alone saved them from spending much more on maintenance. Plus with the ATR fleet being renewed, that number will go down.
DeleteOut of curiosity, what was OU's result last year?
ReplyDeleteLoss of 38 million and just 788,000 passengers
Deletehttps://www.exyuaviation.com/2022/02/croatia-airlines-posts-38-million-loss.html
To be honest, this is then great compared to how Croatia Airlines performed.
DeleteThis says more about their disastrous business than about others' success.
DeleteNow we are only waiting to see how much money Air Montenegro lost and then we will have everyone's results.
DeleteKnowing this is Montenegro, I doubt we will see their results.
DeleteNo final results until Adria being considered.
DeleteThis year's results will be interesting.
ReplyDeleteIt will be interesting to see if they manage to have a profit.
DeleteI doubt it, particularly because of the fleet expansion.
DeleteWhat fleet expansion? They just replaced older leases with newer ones. If anything they will save money.
DeleteWhat matters is how many passengers they get to carry this year. That will be key in bringing them closer to profitability. JU needs volume and without boosting their network and adding more frequencies and destinations they will never manage to reach profitability. That is why I hope most of these new routes will survive the winter.
DeleteNight flights to IST should also provide them with a great deal of transfer passengers. That is why they will need more A320s in the future. With so many new transfer passengers being added, there might be a shortage of capacity out of BEG in the morning.
The new routes will probably generate loss which is normal.
DeleteNot necessarily, at least not in summer. Demand is big and JU didn't really dump fares.
DeleteAnd in winter I don't think many of those routes will be maintained. Most are seasonal.
DeleteDo keep in mind that ticket prices have gone significantly up this year which will help airlines.
DeleteYes but prices of everything have gone up, for airlines included, starting with fuel.
DeleteI think a headache for the company will be the amount of compensation they will need to pay passengers for the flight disruptions this summer.
DeleteThat will be a tough battle for consumers, because the airline can plausibly claim force majeure and people will probably have to pursue compensation through courts, which means the latter will get swarmed with cases and it'll take years to clear the backlog.
DeleteI don't think JU will struggle that much, they planned accordingly and in line with what was realistic. They didn't cancel much. I was a bit disappointed by what they planned for this summer but now I realize they were right not to rush too much. Delayed flights is much better than cancelled ones. Just look at BA which announced a new round of cuts for July.
DeleteWhy don't they publish quarterly results?
ReplyDeleteThey are not required to.
DeleteHow come Croatia Airlines is?
DeleteBecause it is a publicly listed company on the Zagreb stock exchange. Air Serbia isn't.
DeleteThanks. Still I wish we could see their results each quarter.
DeleteCould have been much worse
ReplyDeleteAnd how much were the state subsidies?
ReplyDeleteWithout state support, Air Serbia would go bust
DeleteNational carrier is vital for the economy. It is contributing immensely.
DeleteReally?
DeleteYes, you only need to look at Slovenia.
DeleteAt least some companies like JU could show profit or small loss no matter it includes certain financial support.
DeleteWe have air companies in the neighbourhood that have losses no matter they have the best Adriatic coast + financial support from Government + PSO + udruzeno oglasavanje...
All is good, typical national air carrier, serving a bigger purpose than making money unfortunately, JU carries Serbs through Europe year round and is a vital link for Serbs ...look what happened to Slovenian travel after Adria failure
DeleteCmon, Slovenian economy is the only developed economy in exYu
DeleteAnd in exYu only Slovenia has underdeveloped aviation.
DeleteCroatian economy was at least as developed as Slovenian until Adeze destroyed everything
DeleteLoL. Looks like adz uses same macroeconomic books as you do. Both inaccurate.
DeleteLol is only for Adeze using books. They don't. They use theft and crime, and we all witness consequences of their theft and crime, we do not create them, with or without books
DeleteGetting better.
ReplyDeleteWill Etihad sell remaining 18% stake in JU?
ReplyDeleteDoubt it. They have nothing to loose now.
DeleteWho would have thought this would be Etihad's last remaining investment.
DeleteMy guess is Etihad will leave if Serbian government finds another investor to replace them. Let's see how the new found love with Turkish Airlines develops.
DeleteIf Etihad were to leave, does anyone knows what happens with the Air Serbia - Etihad Guest program?
DeleteIt would be replaced with something else.
DeleteEY will keep its 18% on paper for time to come.
DeleteAir Serbia will be fine and is doing fine all things considered.
ReplyDeleteAgree
DeleteHopefully things keep improving.
ReplyDeleteThey already are.
DeleteJat's loss in 2013 is best proof why Air Serbia was needed. So much money wasted on an airline that barely operated six planes.
ReplyDeleteThe result in 2013 is deceptive. It wasn't generated by Jat but by Air Serbia in the last 4 months - leasing new planes, cabin reconfiguration, huge expenses paid to Etihad... Etihad even brought its photographer from Abu Dhabi to take photos of employees for their IDs just so you understand the scope of the money that was wasted.
DeleteJat's main issue was debt.
Delete@09,44
DeleteAbsolutely. Alot of money was wasted during the initial phase of Air Serbia. 2013 losses were quite noticeable. But the years before we're not great either.
Croatia Airlines today reminds me ofJat Airways 2013, more and more, day by day
DeleteWhat was the total revenue in 2021?
ReplyDeleteCongratulations Air Serbia.
ReplyDeleteConsidering it was a year many airlines did poorly, these are quite good financial results. Operational results are very good in light of Covid.
ReplyDeleteHow many employees does Air Serbia have?
ReplyDeleteJust over 1,000.
DeleteStill a lot for an airline Air Serbia's size.
DeleteTheir employee size is ok, not the best and not the worst. It used to be more than double. I believe at one point it was around 2.400 employees.
DeleteThey got a rid of workers when they shut Air Serbia ground handling and all employees were transferred to Belgrade Airport handling.
DeleteNow most are with Sky Team or whatever they are called. Airlines are fleeing from BEG Ground Handling as they are useless. A few weeks ago LH Group sacked them as well, they are with Sky Team now.
DeleteJU had 8 interesting and intense years with many changes and more will probably be seen in the near future. The aviation market is extremely dynamic and airlines need to act fast to adapt to the needs. I think they are acting reasonably and trying to find more markets.
ReplyDeleteWondering what the punctuality posting will be at the end of the 2022 summer season.
ReplyDeletePunctuality posting?
DeleteI think he means on time performance.
DeleteIt's not going to be very good for most airlines, and for the most part, through no fault of their own.
DeleteHow much is this loss adjusted for the subsidies this company receives from Serbian taxpayers?
ReplyDeleteSeems like their consolidation measures worked during Covid. JU is growing again this year and we will probably get second long haul route in winter.
ReplyDeleteToronto?
DeleteVeć ovog leta bi trebalo da polete za Kinu, sa 1 nedeljnim letom
DeleteKog leta i sa cime kad jos nisu nabavili drugi avion a leto vec u punom zamahu i polako prolazi.
DeleteHainan se vec najavio.
DeleteDon't worry, taxpayers will cover for that. And Etihad will again just take their piece.
ReplyDeleteTaxpayers are happy to cover bigger losses in Croatia and Montenegro.
DeleteAny source for that info about Etihad again taking their piece? Other than your imagination? I didn't think so.
EX-YU could you please include the amount of state aid JU has declared in the report?
ReplyDeleteNo state aid was declared.
DeleteNije loše s obzirom na okolnosti. Da u prva 3 meseca ove godine nije bilo ogranicenja možda bi ponovo bili u plusu.
ReplyDeleteRiječ je o lajnskoj godini.
DeleteNo wonder they did not bad when they are gauging their passengers with astronomical prices. I purchased a tkt SVO-BEG-SVO 6 months in advance and I had to pay 1159e (economy standard) ... that is a true rip off for a 2 1/2 hrs flight (that got delayed by 2+ hrs as well both ways). Once competition is back in the sky and due to their ingratitude I plan on never stepping in one of their planes again!
ReplyDelete- Russia limited the amount of flights between the 2 countries last year, not Serbia. Both JU and SU increased capacity, where possible, to go around this problem.
Delete- this year, with sanctions, high demand and a limit on capacity and aircraft that can be used, there isn't much JU can do. Supply and demand. TK has BEG-VKO for 1.600€ the cheapest for the next few weeks.
Yes indeed this year is even worst price vise! Russia allowed JU to fly two daily and they did so for a while but then our "god" decided that it had to be cut back to one flight a day so NO blame on Russia for this measure.
DeleteWhat a dumb comment. Air Serbia reacted to increased demand and wanted to increase frequency and started sending A330 to SVO but was under constant anonymous threats and political pressure being accused of war profiteering, so it had to reduce operations. That's the reason for increased prices, demand is high and planes are full. If you don't like those prices, check TK pricing for connecting flights.
DeleteBased on history of sanctions in case of Cuba and North Korea, Aeroflot won't be allowed to overfly EU/NATO countries for decades.
If you didn't make that suggestion on how to reduce the ticket cost I would have been at a loss. Thanks a lot and FYI also one can and fly SU + JU/TK on separate tickets or through Yerevan on a combination SU/AU; both of these options are cheaper than JU / TK.
DeleteLooks like you dont want comfort of a nonstop flight? In that case Air Serbia should stop flights so you can enjoy flying Moscow - Yerevan - Istanbul - Belgrade :D
Deleteyeaaaaaaah
ReplyDeletenothing on APR, so it is impossible to check how much government subsidy there was for this to be only €21 mil loss
Not bad at all. It's important they paid off those Etihad loans and didn't take out any new ones.
ReplyDeleteFrom the table we can conclude that the biggest amount of subsidies came in 2017.
ReplyDeleteZa razliku od British Airways-a, Lufthanze(nastavite niz…) koji vežu samo “uspehe” i nemaju uopšte gubitke 🤮🤮🤮. A pri tome su drzavne (većinom) bar Lufthanza. Kako je to moguće da ti “blaženi” zapadnjaci imaju iste probleme kao “prljavi i odvratni” Balkanci…more sve te Švabove treba….
ReplyDeleteFor comparison, Air Serbia lost 21.3 million euros during all of 2021, Croatia Airlines lost 15.2 million in the first quarter of 2022.
ReplyDeleteOU - no subsidies
DeleteJU - yes subsidies
Have you been living under a rock? Do you know Croatia Airlines got over 30 million in state aid last year?
Delete