The Board of Directors of Montenegro Airlines, headed by President Nikola Vukicevic, discussed and accepted the Business Management Report for 2018 and the Financial Statements of the Company for 2018, presented by the Company's Executive Director, Zivko Banjević at the 6th regular session.
The company's business result for 2018 is positive, as the company's operating income was EUR 245,000 higher than operating expenses. However, due to significant financial expenditures the Company operated with a loss of EUR 1.97 million.
This total score is nearly 2.5 times better than 2017, or nearly 6 times better than 2016.
"It is the best balance of success in the last ten years, from the transformation of the Company from doo to ad, and comes in the year in which the Company achieved a record number of transported passengers. Let’s recall that last year MA transported 645,000 passengers in all three categories of traffic, which is an absolute record in the 25-year history of the Company, said MA.
At the beginning of 2017, the company was in an almost untreatable situation, with a loss of 11.47 million euros in 2016. Following the measures taken by the new management and management structure, with the support of the Government of Montenegro, the business was stabilized, and in relatively short terms it resulted in almost six times lower losses at the end of 2018. This amount is virtually marginal compared to the nearly 80 million euro of revenue earned last year, as well as concerning the importance of the Company for Tourism and the entire Montenegrin economy, as stated at the session.
The session also concluded that the results achieved over the past two years were best reflected in the fact that the Company transported more than 1.2 million passengers during that period, earning about 150 million euros, of which nearly 30 million euros remained in the country, as well as an indirect contribution to Montenegrin tourism and the total economy amounted between 250 and 300 million euros. These data point out the main reasons for the preservation of national airline companies.
The result gained is taken into particular account in view of the enormous increase in the price of fuel for 27% over the previous year compared to 2017, according to MA.
"It is evident that in 2018 the Company would operate with a positive result, in addition to the significant financial expenses that primarily relate to the exchange rate differences that could not be affected, if the terms were at least a little better on the airline market. Due to these unforeseen circumstances, we had to allocate a total of 3.2 million euros more than it was planned for the last year. In any case, there is a positive trend in MA's business over the past two years. If prices on the fuel market remain at the level of the first quarter of 2019, we can hope for a positive result at the end of this year, which will be better than the previous one on all commercial and financial indicators," said MA Executive Director Zivko Banjevic.
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Text by Vijesti online, on april 2nd 2019, read more at Vijesti
