Air Serbia recorded a net profit of 35.5 million euros in 2025, down 14.3% on the 41.4 million euros achieved the year before, according to the carrier’s newly published full annual financial statements. The Serbian airline generated total operating revenue of 710 million during the year, up 2.7% compared to 2024, while maintaining positive cash flow and continuing investments in fleet and operations. The company ended the year with 18.6 million euros in cash reserves, slightly higher than the 17.7 million reported at the end of 2024. Net cash inflow from operating activities stood at a strong 81.1 million euros, indicating healthy day-to-day operations despite increasing expenditure pressures across the industry.
Fuel remained Air Serbia’s single largest expense category. The airline spent 158.4 million on fuel and energy in 2025, broadly unchanged from the previous year despite fluctuations in oil prices and broader geopolitical instability. At the same time, several other operational costs increased. Employee expenses rose to 57.6 million, while amortisation and depreciation climbed sharply to 54.7 million from 44.9 million in 2024, reflecting the impact of its fleet growth during the year and ongoing investments. The report indicates the carrier continued investing heavily into its business during 2025. Capital expenditure and investment-related outflows reached 35.8 million euros, while lease-related payments totalled 38.3 million. Overall financing outflows stood at 48.1 million euros.
Among the more interesting details in the report is the airline’s strong improvement in financial performance outside its core operations. Air Serbia generated a net financial gain of 2.8 million euros in 2025, compared to a loss of more than ten million the year before, largely due to favourable foreign exchange movements. Positive exchange rate differences alone amounted to 28 million euros. The financial statements further show Air Serbia employed an average of 1.542 workers in 2025, up from 1.523 the previous year. The largest employee age group remained those between 30 and 39 years old, accounting for 469 staff members.
In the report, Air Serbia states, “Due to ongoing geopolitical uncertainty and continued macroeconomic instability, further intensified by tariffs imposed by the United States on numerous countries and the recent conflict in Iran, an increased negative impact on the global economy can be expected, particularly in relation to energy prices, foreign exchange fluctuations, interest rates, stock market activity, supply chain disruptions and mounting inflationary pressures, all of which could indirectly affect the company’s operations”. It added, “In Air Serbia’s case, the indirect consequences of global macroeconomic instability have primarily been reflected in significant volatility in jet fuel prices caused by unstable market movements, a trend that has continued into the first quarter of 2026 amid the current geopolitical situation. The company’s management is closely monitoring and assessing the potential impact of these developments and is undertaking all necessary measures to ensure operational stability. Given the nature of the company’s core activity and markets, management expects these circumstances to have a certain impact on operations in the coming period, primarily due to rising fuel prices. However, future effects cannot be predicted with reasonable certainty”.
Sadly the financial performance will be much worse in 2026 due to the high fuel prices.
ReplyDelete+1
DeletePerhaps but it is important they had a good year in 2025. You have other airlines who have had a number of terrible years and now have to deal with what is an actually difficult year on the market.
DeleteTrue dat.
DeleteThese are very solid numbers for a regional carrier.
ReplyDeleteAir Serbia keeps investing while remaining profitable. Fleet growth, new routes and still positive cash reserves. Hard to criticise that strategy so far.
ReplyDeleteTrue. What stands out is that the company continues investing heavily instead of simply protecting short term profit margins.
DeleteLet's see how it goes once the Etihad loans mature and payments become due.
Delete^ oh boy, you are so off in your twisted hope that this airline fails.
DeleteAll Etihad loans have been paid. You will have to find something else to hope for.
https://www.exyuaviation.com/2021/08/air-serbia-repays-63-million-etihad-loan.html
You ruined his day now.
DeleteOk, but they still need to repay government Covid loan. Oh, wait…
DeleteThey also repaid that two years ago.
DeleteCompared to where Jat Airways was 13 years ago, these results are remarkable. Whatever people think politically, the airline itself has been transformed.
ReplyDeleteAnd around 9 years ago they went through restructuring and abandoned their previous business model. This shows how a successful restructuring is done. You have other airlines that went through a restructuring 13 years ago and now have a bigger loss than before the restructuring.
Delete...and constantly need financial help of their Governments to stay alive.
DeleteWaiting for the usual excuse on some other place like "Šta da vam kažem, to je Croatia". On the other hand, JU's balance sheet will be butchered looking for a hair in the egg and never to believe in it's numbers.
DeleteNever! Despite the financial reports have been done by world’s famous audit companies. Although he claims that EU have no corruption or crime, exceptions are inevitable when it comes to Air Serbia. What a clown…
DeleteReal, real clown.
DeleteThe oil prices so far this year are going to be brutal on the 2026 results.
ReplyDeleteJet fuel in Serbia hasn’t doubled its price. It went up just slightly so far. And JU is using mostly fuel at home airports, so situation is still bearable. For now at least
DeleteDo remember that JU is now the one responsible for jetfuel sales in Serbia.
DeleteAlso Belgrade still has relatively lower operating costs compared to major EU hubs.
DeletePeople forget Air Serbia is operating in a relatively small home market. Achieving €710 million in revenue from Serbia alone is impressive.
ReplyDeleteYeah, but considerable share of it is transfers. China and US tickets are expensive and they get a lot of transfers, not considering intra-Europe transfers.
DeleteI would love to see their most profitable routes.
ReplyDeleteA couple of years ago they did publish their most profitable markets. Montenegro and Russia were on top.
DeleteYears ago Russia was also the most profitable market for Adria Airways and Montenegro Airlines.
DeleteYears ago BA used to make a killing on flights to Moscow
DeleteThe financing outflows shows they are investing a lot. Since some people here say how they are not investing money.
ReplyDeleteThe report reads much more cautiously than previous years. Clearly they expect 2026 to be challenging.
ReplyDeleteOf course it is going to be challenging. It is challenging across the world. Air Serbia’s ability to adapt quickly during crises has become one of its biggest strengths.
DeleteIncrease flights and prices to russia, let them pay for the fuel lol haha
ReplyDeleteThey are one of the most expensive options to Russia. More expensive than TK. But they are still full.
DeleteYeah i hope they increase flights to moscow to drop the burden on other routes instrad of cancelling flights
DeleteI wonder how sustainable the current expansion pace is if oil prices remain high.
ReplyDeleteIts measured and well thought out so i think for 2026 just fine. They havent taken on silly risks both in terms of destinations and aircraft.
DeleteThe airline seems financially healthy but margins are clearly under pressure from all sides.
ReplyDeleteCompared to many state-owned airlines in Europe, Air Serbia actually looks commercially disciplined.
DeleteThere are remarkably few 100% state owned airlines in Europe. But yeah of those that are JU is doing ok.
DeleteThe increase in expenses was actually smaller than I expected considering inflation and expansion.
ReplyDeleteAir Serbia is becoming less of a Balkan regional airline and more of a serious mid-sized European carrier.
ReplyDeleteWell its based in the Balkans which is part of Europe yep.
DeleteIf Air Serbia can remain profitable through another difficult fuel cycle, that would be a major achievement
ReplyDeleteIt's going to be tough but I think they could just make it. Depends how the war in Iran develops.
Delete^ War against Iran*
DeleteIllegal agression and attack on Iran, to be even more precise
DeleteYup
DeleteSo much for the claims that Air Serbia is surviving due to state support. These figures show a company that is commercially functioning on its own.
ReplyDeleteBelieve me the state is not gonna tell you if they are gonna give financial help to Air Serbia ! After all for the time being nobody can check the government for that .
Delete^ Wrong. Serbian annual budget declares each year which companies of "strategic importance" get state subsidies. Air Serbia for several years has not been one of them. In its annual reports the EU, under air transport, no longer mentions subsidies for Air Serbia and in facts finds air transport to be fully compliant with EU rules.
DeleteAnonymous10:10
DeleteSource: Trust me, bro.
You can easily open annual Serbian state budget and annual EU progress report. Both are online.
DeleteDon't expect too much please.
DeleteSources are JU financial reports and public statements budget. Nobody cares if you believe or not. Other clowns as well
DeleteAirlines used to worry mostly about competition. Today they are fighting fuel markets, inflation, currencies and supply chain chaos.
ReplyDeleteSign of the times.
DeleteThis says a lot about margins. Hundreds of millions in revenue can still produce relatively modest profits.
ReplyDelete5% is good for one year and absolutely great if consistent for an airline business. Keep in mind that they are using other people's money (passengers) to finance most of it. We always book in advance, most of the time months in advance, so the return on their investment is much higher than the net margin of 5%.
DeleteThank goodness they didn't expand in the Middle East. They would be taking a big financial hit now.
ReplyDeleteIf positive exchange rate differences in 2025 alone amounted to 28 million EUR, and a year before this segment was minus 10 million EUR, it means that if exchange differences were the same as year before, the 2025 result would be negative, i.e. Air Serbia would make a loss (so, operations are not so profitable as one might think, based on annual result). Anyhow, if exchange rates differences are excluded, the result would be very modest, but still positive. Btw. there are ways to protect against exchange rates losses, but it costs...
ReplyDeleteThat interpretation is wrong because you assume foreign exchange differences are somehow separate from the airline’s actual financial performance, when in reality they are part of running an international airline business. Air Serbia earns and pays in multiple currencies every day - US dollars for fuel, leases and maintenance, euros for much of its revenue, as well as other currencies across its network. Therefore exchange rate movements naturally impact the final result, both positively and negatively. It is also misleading to compare 2025’s +28 million euro FX impact only against the -10 million euro result from the previous year and then conclude the airline would have posted a loss. That ignores the fact that many other cost and revenue categories also changed year on year. If exchange rate movements had evolved differently other variables such as fuel hedging costs, pricing, demand, financing expenses or operational decisions may also have differed. Also foreign exchange gains in 2025 were largely because of weakening of the US dollar against the euro during parts of the year. This was not some one-off accounting “trick”, but a real financial effect that improved Air Serbia’s balance sheet and reduced the euro value of obligations.
DeleteIt is true that airlines can hedge against currency fluctuations, but hedging is expensive and does not always work in the company’s favour. Many airlines actually suffered heavy hedging losses in past years when markets changed.
@09:44
Delete+1
anon09:44 nice reply, very academic and full of correct statements, but totally misleading in terms of FX effect on someone's business. As you correctly confirmed, hedging is an option to reduce negative FX effects but as we see it from 2024 financial statements, Air Serbia was not exactly utilyzing it. This level of 2025 result is there mostly due to USD exhange rate movements in favour of EUR dominated businesses, and if FX gaines and losses (something that is out of Air Serbia's hands when it comes to management) would be excluded, profits would be much lower, simple as that. Just as a warning for this and next year, their operations need to be more efficient, or they would soon address the government for help, as Croatia is doing for years already ...
DeleteThey are going to move to their HQ in 2027,
ReplyDeletethat would save/generate few milions
plus hotel and lease of 2nd building
Firstly being positive i already a great achievement.
ReplyDeleteYear to year results have slightly degraded but the fuel price and the EU fueling rules have probably made a hit on their result.
2026 is not going to be an easy year but being independent and very reactive, they could create some surprises.
the era of easy post-pandemic growth in aviation is ending.
ReplyDeleteFor some it never started.
DeleteThe company seems caught between two priorities: continuing expansion while also protecting profitability.
ReplyDeleteThe airline’s continued investment suggests management still sees significant growth potential ahead.
ReplyDeleteShould cut and flights optimization
ReplyDeleteThey are doing the opposite. 2 new routes launched in the past 10 days and another 3 coming in the next 2 weeks.
DeleteLol. Marek is not Jasmin, to read comments here and make decisions then.
DeleteJasmin the lion is the best! Jasmin fan here.
DeleteDo the A319s bought account for 24 or 25?
ReplyDelete2024. It was revealed in 2025 thanks to the 2024 financial report.
DeleteAre the financial results published on the APR website?
ReplyDeleteyes
DeleteSkromno procenjujem da je investicija u izgradnju svoje nove Direkcije i novog Hotela na Aerodromu Beograd, jeste najznacajnija investicija u ifrastrukturu od svojeg osnivanja za vreme Daneta Kondica pa do danas. Verovatno i za buducih deset godina.
ReplyDeleteSama cinjenica da Aerodrom Beograd nije izgradio hotel od 1962 godine do danas, pokazuje da broj putnika od otvaranja Aerodroma, u prvih 15 godina nije imao promet. Koliko sada ima u jednoj godini. Postojao je lobi protiv gradnje hotela na samom aerodromu. Ostaje zahvalnost da je Er Srbija postala znacajan luconosa u sirenju poslova na svojem maticnom Aerodromu.
Sjajno! Hvala Er Srbijo. Dostojno ime nosis.
Rodney Marinkovic
Castle Hill. Sydney Australia
Ulaze se da bi se smanjili troskovi zakupa kancelarija i hotela za one sa propustenim letovima zbog kasnjenja. Ulaze se, pa se smanjuje profit. Ulaganja tek dolaze. Veropvatno u nove avione, koje je skupo rentati na trzistu ili ih nema. A LHG grupa imala gubitak preko 600 miliona evra, a onda im Jasmin iz OU ne valja, koji je medju najboljim menadzerima u jugoistocnoj Evropi.
DeleteJel i Jasmin ulaze u hotel? 🤣🤣🤣
DeleteUlozit će ako obećaju u hotelu da će imat dobru kahvu i da će za njega bit za djaba 🙂
Delete11.48
DeleteKako Vas nije sram da Jasmina tako omalovazavate da je samo među najboljim u JI Europi. Vi ne znate da je Jasmin autor udzbenika "Management zrakoplovnih kompanija". To je Biblija suvremene avijacije iz koje su učili najbolji svjetski manageri aviokompanija. Njegova stručnost, mladalačka energija i posvećenost poslu vidljivi su i iz poslovnih rezultata kompanije kojoj je na čelu. Jasmin je the best of the best worldwide, a ne među najboljima lokalno. Bolje ga nemojte uopće hvaliti jer takve Vaše ograničene pohvale u slučaju Jasmina nikako nisu dovoljne niti objektivne 🙂
Stvarno? Napisao tu knjigu? Wow, pa on je genije.
DeletePIR, daj mi recite sto ga toliko prozivate za kahvu? Jel to sto je Bosanac ili je negde nesto provalio?
DeletePrvo da razjasnimo, totalno sam operiran od bilo kakve pristranosti ili animoziteta prema bilo kojem etnicitetu, u ex-yu, i globalno. Ne pišem kava ili kafa nego kahva zato što je Jasmin Bosanac ali su i njegov etnicitet i varijanta riječi kava/kafa/kahva irelevantni. Inzistiranjem na ispijanju crnog napitka ukazujem na mentalitet i stanje svijesti neprimjereno današnjem dobu, gdje je važno uhljebiti se i umjesto obavljanja radnih zadatka piti kahvu i čitati novine. Jasmina osobno ne poznam i ne znam da li uopće pije kahvu. On je samo personifikacija i prototip uhljeba i aparatčika čiji se radni vijek svodi na ispijanje kava i tračanje dok kompanija tone i grca u gubicima i dugovima.
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