Montenegro Airlines reduced loss in 2018

According to Executive Director of Montenegro Airlines (MA), Zivko Banjevic, the company finished the last year with a loss of EUR 1.97 million, while its overall result was around two and a half times better than in 2017.

– The company’s financial result for the last year is positive, since its revenues exceeded the expenditures by EUR 245,000. However, because of considerable financial expenses, the loss amounted to EUR 1.97 million but the overall result was around two and a half times better than in 2017 and six times better than in 2016, Banjevic said.

He said that this was the best income statement the company had had in the previous ten years, since its transformation from the limited liability into a joint stock company, adding that it came in the record-breaking year in terms of the number of passengers carried.

Banjevic said that MA had carried a total of 645,000 passengers last year in all three categories of transport, which was an absolute record since the establishment of the company 25 years ago.

In early 2017, the company was in almost hopeless situation, with a EUR11.47 million loss from 2016. He said that the measures taken by the new management, with the Government’s support, had resulted in a reduction of loss by nearly six times at the end of 2018. Banjevic said at a meeting of the MA Board of Directors that also adopted Management Report on operational and financial statements.

He said that the amount was almost marginal compared to nearly EUR 80 million in revenues from last year and compared to the significance of the company for tourism as well the entire Montenegrin economy

It was stated that the sesults achieved were supported by the fact that in the last two years the company had carried over 1,2 million passengers, had revenues of around EUR 150 million, of which EUR 30 million stayed in the country and that its indirect contribution to the entire Montenegrin tourism and economy came to between EUR 250 and EUR 300 million,

– The data clearly shows why we should try to preserve the national flag carrier. The results get greater importance if you take into account the enormous increase last year in aviation fuel prices by 27% compared to those in 2017, said Banjevic.

He added that the company's financial results for last year would have evidently been positive even in spite of considerable financial expenses which are the result of difference in currency value that could not have been influenced, if the aviation fuel market conditions were favorable.

Montenegro Airlines Podgorica

MA

Zivko Banjevic

Montenegro Airlinesa financial operations

Montenegro Airlines operations

Montenegro Airlinesa losses