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Income statement of MA in the 2018 proved to be the best in last 10 years

April 02, 2019

The Board of Directors of MA headed by the President Nikola Vukićević, discussed and accepted Management Report on Business Operations for 2018 and Financial Statement of the Company for 2018 at the sixth regular session, presented by Company's Executive Director, Živko Banjević.

Business result of the Company for 2018 is positive, which is shown by the fact that operating income was 245 thousand euros higher than operating expenses.However, due to significant financial expenses, the Company operated with the loss of 1.97 million euros. The overall result is 2.5 times better compared to the year of 2017, or close to 6 times better compared to 2016. This is the best income statement in the last 10 years, since the transformation of the Company from d.o.o in a.d, and it happens in the record-breaking year of the passengers handled. As a reminder, MA handled 645.000 passengers last year in all three categories of the traffic, which represents absolute record in the 25-year history of the Company.

At the beggining of 2017, the airline was almost in hopeless situation, with a loss of 11.47 million euros from 2016. After the measures undertaken by new management structure, with support of the Government of Montenegro, business was stabilized in a relatively short time period achieving results with almost 6 times lower loss at the end of 2018. This amount is almost marginal compared to 80 million euros of revenues generated in the last year, as well as in relation to the importance of the Company for tourism and overall economy of Montenegro, as noted at the session.

It was also concluded at the session that results achieved in the last two years are best reflected in the fact that Company handled more than 1.2 million passengers, generated revenue of 150 million euros, out of which nearly 30 million euros remained in the country. We should also highlight that indirect contribution to the Montenegrin tourism and overall economy amounted between 250 and 300 million euros. These data clearly indicate the main reasons why national airline should be perserved.

The results achieved are especially important bearing in mind the enormous increase of 27% in the price of aviation fuel in the previous year compared to 2017. "It is evident that the Company would operate with overall positive results in the year of 2018, despite the significant financial expenses, which primarly relate to exchange rate differences that could not be affected,if the conditions of aviation fuel on the market were any better. Due to this unforseen circumstances we had to allocate a total of 3.2 million euros more than planned in the last year. In any case, the positive trend in MA operations is evident in the previous two years. If the prices of aviation fuel remain on the level of the first quarter in 2019, we can hope for a positive result at the end of this year, which will be better than the previos one according to all commercial and financial indicators", said the Executive Director of MA, Živko Banjević.

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