Air Serbia registers €77 million loss in 2020
Air Serbia has reported a loss of 77 million euros during the pandemic-stricken 2020, ending six consecutive years of profit. The result does not take into account the 100-million-euro recapitalisation provided by the Serbian government in late 2020, which saw it increase its ownership stake in the company to 82%. From the onset of the pandemic, on March 8, until December 31 of last year, Air Serbia was forced to cancel 23.079 flights, which had a significant impact on the airline’s revenue. Despite the financial hit, the company maintains its liquidity has remained stable, with the airline meeting all obligations to staff, providers and creditors.
Commenting on the result, Air Serbia noted, “The company cannot predict the complete impact or when the situation could improve and return to pre-crisis levels. The company’s management is actively following the situation and responding adequately to all challenges related to the Covid-19 pandemic, which will depend on a number of international factors, such as testing requirements, vaccinations, entry requirements and the risks posed by new variants”. Since the pandemic took hold, the airline has undertaken a number of measures to reduce costs, including rationalising its fleet and renegotiating leasing terms for aircraft, as well as reducing airport fees and taxes at select destinations. The carrier has also launched its “Deliver” program, aimed at reducing unnecessary costs and non-vital services which has “strongly contributed to the company’s liquidity”. The airline has renegotiated more affordable pricing for utilised IT services and has used the slot suspension in Europe and the United States to its advantage.
| Year | Net profit / loss (million €) |
|---|---|
| 2013 | ▼ 73 |
| 2014 | ▲ 2.7 |
| 2015 | ▲ 3.9 |
| 2016 | ▲ 0.9 |
| 2017 | ▲ 16.0 |
| 2018 | ▲ 12.3 |
| 2019 | ▲ 9.5 |
| 2020 | ▼ 77 |
During 2020, Air Serbia operated 89 special flights in order to transport medical equipment and health workers, carry over 5.000 stranded Serbian citizens and 1.800 foreign nationals back to their countries, as well as ferry millions of doses of Covid-19 vaccines. The airline has continued to transport vaccines throughout 2021 as well and “remains at the disposal of the Serbian people and its government”. At the end of last year, Air Serbia hired independent experts in order to estimate the economic impact the national carrier has on the country’s GDP and the development of tourism in Serbia. “The company’s management continuously assesses the objective losses caused by the coronavirus pandemic in 2021 on a quarterly basis, as well as the its ability to meet all obligations towards creditors and suppliers”, Air Serbia said.
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