Air Serbia reports net profit of €2.7m

Cost control helped Air Serbia to return a profit last year.

Air Serbia, in which Etihad Airways owns a 49 per cent stake, yesterday reported a net profit of €2.7 million (Dh11.1m) for 2014 – its first full year of operations after its rebranding.

Revenues jumped 87 per cent to €262m from a year earlier on the back of a 68 per cent increase in passenger numbers to 2.3 million, the airline said.

Air Serbia, formerly known as Jat Airways, said that the induction of 10 new Airbus aircraft helped to significantly reduce its operating costs. It also refurbished five existing ATR aircraft.

“These results are a great achievement validating the effectiveness of our strategy,” said Dane Kondic, the chief executive of Air Serbia. “The profit we have delivered in 2014 … lays a solid foundation.”

James Hogan, the president and chief executive of Etihad, said Air Serbia’s continuing success “will depend on continued investment in its workforce and in innovative products and services”.

The highlights for Air Serbia in 2014 include the setting up of Aviolet, a charter brand that carried more than 90,000 passengers to Turkey, Greece, Egypt and Italy.

Air Serbia’s network of direct routes grew to 40 destinations in 30 countries. It also re-established a link in December between the Croatian capital of Zagreb and Belgrade, last flown 23 years ago.

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