Airline Air Serbia has reported strong profits in recent years, earning 21.5 million euros in 2022, 40.6 million euros in 2023, and 41.5 million euros in 2024. Regional aviation portal Zamaaero notes that these figures are impressive compared to several European carriers, considering the size of its fleet and passenger numbers.
Key factors behind Air Serbia’s profitability include:
- Flights to Russia: Air Serbia and Turkish Airlines are among the few European carriers flying to Russia. High ticket prices (often over 1,000 euros) and strong load factors, including passengers connecting to Montenegro, the EU, and the US, generate substantial revenue—estimated at around 50,000 euros per flight.
- Routes to Cyprus and Montenegro: High demand and premium pricing, including Russian passengers with property in Montenegro, add significant income.
- Charter flights: The airline dominates Serbia’s charter market, holding over 90% of flights, often benefiting from government restrictions on foreign competitors.
- Government contracts: Flights for Serbian government delegations, sports teams, and repatriations contribute further revenue.
- Low operational costs: Wages, benefits, fuel costs (through agreements with NIS), and airport fees are among the lowest in Europe.
- PSO subsidies: Public Service Obligation payments are substantial and less strictly regulated than EU rules, providing additional financial support.
Challenges impacting profit include the cost of establishing new routes, flight cancellations and delays, leased aircraft (especially wet leases), grounded planes, staff turnover, multiple aircraft models increasing maintenance complexity, and operating several subsidiaries in Belgrade.
Despite these challenges, Air Serbia has demonstrated agility, expanded its network, and successfully competed in the regional market, contributing to its robust financial results.
