Air Serbia posts €12.2 million profit for 2018
Air Serbia has registered its second-best financial result since its relaunch in late 2013, although profits shortened compared to the previous year. The Serbian national carrier recorded a net profit of 12.2 million euros in 2018, while revenue reached 288 million euros. The result represents a 23% decrease in profits from sixteen million euros the previous year. The carrier's revenue remained unchanged on 2018. Although earnings from passenger services decreased 3.6%, the airline boosted takings from charter flights by 41.7%, from unused tickets by 37.7% and from cargo by 4.4%. On the other hand, expenses stood at 278.7 million euros. Savings were made in handling, maintenance, frequent flyer program and others. The biggest reduction in costs was recorded in catering, where expenses were reduced by 55.5% on 2018, while the biggest increase was registered in spending on fuel and taxes, as a result of new MSFI15 accounting principles.
| Year | Net profit / loss (million €) |
|---|---|
| 2013 | ▼ 73 |
| 2014 | ▲ 2.7 |
| 2015 | ▲ 3.9 |
| 2016 | ▲ 0.9 |
| 2017 | ▲ 16.0 |
| 2018 | ▲ 12.3 |
In line with the transaction agreement between the Serbian government and minority shareholder Etihad Airways, Air Serbia was the beneficiary of state aid in 2018 to the amount of 20.9 million euros, which is the same figure it received the previous year but down from 41.8 million it benefited from in 2017. The airline's EBITDAR (earnings before interest, taxes, depreciation, amortisation, and restructuring or rent costs) stood at 66.4 million euros, up 19%, primarily as a result of cost cutting measures. At the end of 2018, Air Serbia mainline had 1.370 employees, down from 1.488 the year before. The figure includes 204 pilots and 289 cabin crew members. Together with its subsidiaries Air Serbia Catering and Air Serbia Ground Handling Services, the company counted 1.758 employees, down from 2.339 on 2017. The airline's annual financial results were audited by KPMG.
In 2018, Air Serbia handled 2.480.000 passengers, which was down 5.2% on the year before. The number of operated flights decreased 3.6% on 2017, standing at 15.026, while the airline maintained services to 39 destinations, down from 42. The number of operational aircraft stood at 20, with one Boeing 737-300 being retired. Network capacity decreased 5% to 4.03 billion Available Seat Kilometres (ASK). The airline's average cabin load factor stood at 71.2% in 2018, down 2.2 points from 73.4% the previous year. Air Serbia's cargo uplift increased 0.9% to 6.213 tons, while punctuality (the amount of flights which departed or landed within fifteen minutes of the scheduled time) stood at 83%, which is the same as in 2017. The airline's dedicated charter brand Aviolet operated a record 958 flights in 2018 and carried 223.000 passengers.
Commenting on the results, Air Serbia’s CEO, Duncan Naysmith, said, “Last year was important because the airline set the foundations for expanding its network. This also served as a basis for our long term strategy, which has already been implemented and will reinforce our role as a regional leader”. He added, “Regardless of the numerous and demanding challenges in the airline industry, Air Serbia is developing its product portfolio to ensure even better financial and operative results but also to offer our passengers an excellent product for an economical price”.
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