Montenegro Airlines posts €8 million loss in 2019
Montenegro Airlines has reported its 2019 financial results with the carrier increasing its net loss to 7.962.948 euros compared to a loss of two million the year before. The airline’s revenue stood at 80.7 million euros. It generated the most income from ticket sales, followed by taxes and charter flights. Its expenditure grew 7.5% to 85.2 million euros. Jet fuel was the biggest expense at 16.3 million euros, followed by taxes, operational aircraft leases and wages. The company counted 372 employees at the end of 2019. Montenegro Airlines has failed to turn a profit in years.
| Year | Net profit / loss (million €) |
|---|---|
| 2014 | ▼ 9.5 |
| 2015 | ▼ 10.4 |
| 2016 | ▼ 11.5 |
| 2017 | ▼ 15.9 |
| 2018 | ▼ 2.0 |
| 2019 | ▼ 8.0 |
Late last year, the Montenegrin government adopted legislation “for the investment and consolidation of the national carrier” which foresees the allocation of 155 million euros to Montenegro Airlines over a six-year period. The law is aimed at preventing the indebted carrier from collapsing and going into bankruptcy. At the time, the government noted that 105 million euros would be used to cover the airline’s debt, while fifty million would be utilised for the acquisition of new aircraft. The state emphasised that the bankruptcy or closure of the airline would have a negative impact on the Montenegrin economy and its tourism sector. There have been calls for the legislation to be revised due to the ongoing coronavirus Covid-19 pandemic, which has grounded the national carrier since March 19. Last month, Montenegro’s Prime Minister, Duško Marković, commented on the carrier’s role in repatriating the country’s stranded nationals by saying, “This is the best response to the question whether we need a national carrier”.
Montenegro Airlines’ operational results improved in 2019 compared to the year before. It handled a record 657.416 passengers, representing an increase 1.9% on 2018. Its average cabin load factor stood at 71%. The airline operated a total of 7.798 flights. Recently, Vlastimir Ristić was named as the airline’s new CEO, after Živko Banjević resigned from the role at his own request following a three-year period. Montenegro Airlines is the second national carrier in the former Yugoslavia to post its financial results, with Croatia Airlines previously reporting a 10.7 million euro loss for 2019. Air Serbia is expected to make its financial performance public in July or August of this year.
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