Montenegro Airlines registers over €15 million in lost revenue
Montenegro Airlines has lost over fifteen million euros in revenue, while it is yet to estimate overall losses generated by the coronavirus Covid-19 pandemic. “Currently, it is impossible to asses the company’s losses as a result of the coronavirus since the pandemic is still ongoing. In any case, we are talking about a multi million euro loss. An indication is that during the first half of the year, Montenegro Airlines’ revenues declined by 15.110.063 euros”, the carrier said. It added, “During the first half of July we operated 84 flights and carried 4.432 passengers. Over the same period last year, we had 515 operated flights and welcomed 43.577 passengers”.
Montenegro Airlines resumed commercial flights on June 12 after almost three months, however, rebuilding its network has proven a challenge. The carrier is banned from flying to its biggest market in Serbia and has been forced to discontinue some services it restored due to travel bans and restrictions. The airline currently maintains operations from Podgorica to Zurich, Ljubljana, Paris and Lyon, as well as from Tivat to Hannover and London, with the latter being resumed this week. Furthermore, all routes are operating on a low-frequency basis. In comparison, budget carrier Ryanair now serves more destinations from the Montenegrin capital than the national carrier.
Montenegro Airlines’ CEO, Vlastimir Ristić, recently said the company’s finances have been hit hard by the ongoing pandemic and noted the government’s decision last year to provide 150 million euros in state aid over a six-year period has been put on hold and is being reviewed by the country’s competition watchdog. Mr Ristić added that a ban on flights to Belgrade have left the airline’s future at risk. The company currently has outstanding debt for unpaid taxes and contributions, as well as fees at Montenegro’s two airports, amounting to sixty million euros. “That’s a large amount that will be serviced from the government aid bill”, Mr Ristić noted.
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