Air Serbia posted its best financial result on record by generating EUR 21m in net profit last year, with the carrier claiming it received no subsidies from the state.

“Based on preliminary results, Air Serbia posted a positive net and operating result in 2022, for the first time since the coronavirus pandemic broke out, achieving a profit of EUR 21m, without a single euro coming from government subsidies. The good preliminary financial result was achieved thanks to efficient operations and business consolidation measures that were carried out during the pandemic, as well as a big network expansion, traffic volume increase of around 60% year-over-year, general rise in demand since spring 2022 and the easing of travel restrictions which were in force up until then”, the airline said in a statement.

Air Serbia has managed to bring its costs down by 25%, while its aggressive growth of over twenty new routes in 2022 performed exceptionally well. The carrier handled 2.75m passengers during the year. Its detailed and audited financial results will be publicly available this summer.

The Serbian government has not listed Air Serbia as a recipient of direct state subsidies in its 2023 budget for the first time in nine years. The government has maintained that previous funds destined for Air Serbia from the state budget were to pay off old debt owed by the carrier’s predecessor Jat Airways.

During 2022, the state purchased 1.82m newly issued shares by Air Serbia valued at a total of EUR 15.5m, increasing its ownership stake in the flag carrier by 1.6 points to 83.58%.

Source: EX-YU Aviations, Momentum