Air Serbia and Air Montenegro are both on course to deliver a net profit in 2025, supported by strong financial performance as the current year draws to a close.
The Serbian carrier recently indicated it remains on track for another profitable year. “At the moment, we are on par with last year’s profitability, which was a record in terms of earnings. However, it is important to note that costs continue to rise, so our ability to remain flexible and adapt to market conditions is a key driver of our success”, Air Serbia’s CEO, Jiri Marek, said. He added, “All of our KPIs (Key Performance Indicators) are showing strong year-on-year performance, and what is especially important is that those with a direct economic impact are improving the most. For example, passenger numbers are growing faster than seat capacity, which is driving a notable increase in load factor. Overall, all our key metrics are moving in the right direction, and we are very pleased with the results”.
Air Montenegro has also expressed confidence in its financial performance. The carrier’s CEO, Vuk Stojanović, noted, “The financial result for the first ten months stands at around three million euros. This is a preliminary figure which will likely improve further once the final review and checks are completed”. He added, “These results confirm the passenger trust in us and motivate us to continue improving service and developing our airline. It was in June four years ago that our first regular commercial flight took off on the Podgorica - Belgrade route. Today, four years later, we look back with gratitude and pride at what we have achieved”.
In 2024, Air Serbia registered a record profit of 41.3 million euros, up from 40.5 million the previous year. Additionally, the airline’s total annual revenue in 2024 exceeded 700.3 million euros for the first time. Air Montenegro registered a net profit of 540.000 euros in 2024, down from 3.4 million in 2023. The airline’s revenue totalled 62.8 million euros.
Congratulations to both carriers
ReplyDeleteWell done, especially to JU with all its expansion and still in profit. Truly, well done.
DeleteBoth airlines reported profits. Great. Now let’s see improvements: consistent product, fair prices, better digital platforms. Money means nothing if passengers aren’t benefitting.
DeleteI wonder if there will be some surprise in JU's financial report like for last year when they bought 3 aircraft.
ReplyDeleteOU?
ReplyDeleteabout minus 30 million
DeleteAir Serbia profits: ✔️
DeleteAir Montenegro profits: ✔️
Croatia Airlines: buffering…
It's almost as if investing half a billion euros into leasing aircraft after already being unprofitable isn't the best strategy.
Delete-30 million seems realistic. Unfortunately this summer they really underperformed financially.
Delete@09:23 how do you invest half a billion if you are leasing them?
DeleteIs that Zama academy economics?
Because the leasing costs of the 10 year lease amount to that much. It is not my figure, it is the figure they publicly announced.
DeleteSo it is 50 million Euros per year in fleet costs. Which is reasonable for 15 new aircraft.
DeleteThe issue is the payments are not being made per year and it doesn't involve associated costs like training, maintenance and acquiring aircraft parts. That's why their finances are so bad at a time when most of the world's airlines are ultra profitable. Not to mention they are also paying leasing for all their other aircraft.
DeleteAircraft lease payments are monthly. That is the standard practice in the aviation industry.
DeleteUpfront costs of introducing a new generation of aircraft are also unavoidable.
For an airline that hasn't turned a profit in years, those are major obligations to take on.
DeleteHow much of the JU profit is being generated by Russia ops?
ReplyDelete120%
Delete^ I'm sure. They phoned you and told you.
Delete^
DeleteIs it so hard to see sarcasm?
I believe most of the profit comes from Russia operations.
DeleteIf you believe so...
DeleteGreat to see both airlines in the green.
ReplyDeleteGood. More focus on fleet improvements should be made now.
ReplyDeleteIn JU's case most of that profit needs to be repaid to the state budget.
DeleteAnon 09:10
Delete+100
Cabin upgrade and standardization is definitely needed.
Agree. Cabin standardization across the fleet is something they should invest in.
DeleteCongratulations to both of them, especially JU. Glad to see how they keep the great Yugoslavian heritage alive and shaped up for the future. This is not just gifting Serbia but also the rest of ex YU. THANK YOU 🙏🙏🫂
ReplyDeleteWill be interesting to see what happens to Air Montenegro's finances next year when Wizz Air opens its base in Podgorica.
ReplyDeleteBy then they will likely have a PSO contract and will be getting millions from the government.
DeleteCan't wait to see which routes they put up as part of PSO.
DeleteWe already know Brussels will be one.
DeleteGood for them
ReplyDeleteFour years young and already profitable. That’s a pretty big achievement.
ReplyDeleteHow about investing some of those profits in fleet renewal now.
ReplyDeleteWell Air Montenegro has already announced they plan to get a fourth E195 next year.
Deletehttps://www.exyuaviation.com/2025/11/air-montenegro-to-add-fourth-aircraft.html
DeleteAnd Air Serbia is getting five planes in the next few months.
DeleteWaiting for ”tax payers money” crowd…
ReplyDelete+1
DeleteIt will be interesting to see by how much the profits are up or if at all compared to last year.
ReplyDeleteIf they remain in profit that will be all that matters.
DeleteWell profit growth or decline in profits is equally important.
DeleteWill the government's of either privatise their national carriers?
ReplyDeleteIf they are profitable, why privatize them?
DeleteBecause they might not be profitable forever and it is easier to sell when their finances are in order.
DeleteI doubt anyone would be interested in either
DeleteI wouldn't be so sure that there would be no interest.
DeleteIf they were actually profitable, i.e. in market terms (business revenues exceeding business expenses) there would be interest in buying them.
DeleteSadly that's not the case.
Serbian government might sell it when they need money. Which might be sooner rather than later.
DeleteI don't see that happening. ASL is Vucko's kid and he is not going to lose public face by selling it to a foreign airline.
DeleteI wouldn't be so certain. It can always be spun as a major success because it can be sold to someone.
DeleteI don't see anyone being interested other than some Chinese airline, which I don't think would be in JU's best interest.
DeleteWould a Chinese or a Turkish airline be allowed to get the majority of JU shares? As long as we are not a member of the EU or we still need to keep over 50% of it?
DeleteAnd how much do they get from the state?
ReplyDeleteHas the price of oil gone up or is it still stable?
ReplyDeleteIf the Russia-Ukraine war ends, the price of oil will plummet.
Delete@10.04 they have been modestly growing this year.
DeleteThat's a lot of revenue at JU. Unexpected.
ReplyDeleteLove it! Well done
ReplyDeletehow much of these profits are generated through transit passengers? JU’s success is heavily tied to connecting Balkan traffic over Belgrade. Any shift in regional competition could quickly erode margins.
ReplyDeleteTransit traffic is a big part of JU’s success, no doubt. But that’s the whole point of having a hub. Using Belgrade to connect markets has less demand for direct flights. As long as BEG keeps expanding and JU continues adding routes, the transit share actually strengthens profitability. Every major airline relies on transfers. Why should Air Serbia be any different?
DeleteGood news. However, Marek's statement worries me a bit. Sounds like "we did nothing, but people just travel more, so yay!"
ReplyDeleteAnd yes, I am aware of the long haul expansion and a few other new routes, but besides that, in their Europe ops, which is probably 90% of their business, they didn't do almost anything.
What I would do:
- Get more Embraers, A220s, ATRs
- Densify the regional and Euro-Mediterranean network with more frequencies
- Work on the brand: standardise livery, seats, hard product
- More targeted online marketing (make Georgians living in Czechia aware that they can fly with you to Tbilisi, for example)
- Introduce the FF programme, make it easy and fun to use, with real benefits everyone can feel (even the not very frequent flyer)
- Make the inflight sandwich look like it's from this century, not from a worker's canteen in the 70s
- etc...