Air Serbia's passenger share tumbles in 2018
Air Serbia saw its passenger share at Belgrade Nikola Tesla Airport decline last year after rolling out a set of unpopular cost cutting measures and reducing its number of flights. According to Belgrade Airport's annual report, the Serbian carrier recorded a passenger share of just 45%, down from 50% registered the year before. Although not indicated in the report, the airline's passenger numbers at the airport are believed to have fallen some 7%, while foreign carriers registered a 14% increase in numbers. Last year, Air Serbia operated some 30.000 flights to and from Belgrade, down 6% on 2017. At the same time, foreign carriers grew their passenger share to 55% and accounted for 49% of all flight operations.
The operator of Belgrade Airport, VINCI, has said it anticipates for Air Serbia to hold a passenger share of between 40% and 46% on an annual level. The company faces growing competition from airlines which are increasingly moving in on routes which were previously solely operated by the national carrier. Over the past few years, it has been directly challenged on a number of its services including Amsterdam, Berlin, Malta, Paris, Larnaca and Tel Aviv. However, Air Serbia will soon launch nine new routes, which should help improve both its passenger numbers and overall share at Belgrade Airport. The airline has also faced growing indirect competition from low cost carriers at Niš Airport in the country's south-east. Last year, just over 7% of all passengers departing Constantine the Great Airport hailed either from Belgrade or the northern province of Vojvodina. Meanwhile, Wizz Air launched operations from Vienna to Niš last November, further challenging both the Serbian and Austrian national carriers which maintain services between Belgrade and Vienna.
Air Serbia completed its transition into a hybrid full fare - low cost carrier last year, which has been met by a largely negative response from the flying public. The airline's CEO, Duncan Naysmith, said last year, “Technology has completely transformed the way people travel in the 21st century, and the ability to have a tailor-made travel experience has been central in this process. Measures, such as unbundling air fares, has enabled Air Serbia to better compete and offer more value, while retaining all its differentiating hallmarks, including the fact that we fly to primary airports, run a frequent flyer program, operate a Premium Lounge, provide seamless codeshare flight options through Belgrade and much more”.
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