Air Montenegro recorded a profit of more than €2 million during the first nine months, despite a substantial increase in fuel expenditure. The state-owned airline also reported cash holdings of approximately €11 million as it prepares to expand its European network.
The carrier transported around 418,000 passengers during the reporting period, approximately 4,000 more than in the corresponding period a year earlier. Its full-year passenger total could exceed 520,000, while average cabin occupancy is expected to remain above 80%.
Higher fuel prices have added approximately €5.5 million to the airline’s expenditure, with the full-year fuel bill potentially increasing by around €7 million compared with previous assumptions. Despite this pressure, management believes the company could remain profitable for the full year, although no firm earnings forecast has been provided.
The airline’s cash position provides a liquidity buffer as operating costs rise and additional routes are prepared for launch. Air Montenegro’s expansion includes planned services from Podgorica to Brussels, Frankfurt and Zagreb, while Paris and Bari are also part of the wider five-destination Public Service Obligation (PSO) programme.
The procurement was assigned an estimated value of approximately €4.79 million excluding VAT. This represents the programme’s maximum estimated value rather than a confirmed payment to the airline.
The government-backed programme is intended to support strategically important air connections alongside the carrier’s commercial operations. The longer-term commercial test will be whether the new services attract enough passengers to reduce the need for public financial support.
Rising fuel expenditure remains a major financial risk. Airlines have limited short-term options for avoiding higher fuel prices, while transferring the entire increase to ticket prices can weaken demand in a competitive market. Load factors, ticket yields and fleet utilisation therefore remain important factors in maintaining profitability.
Passenger growth of approximately 4,000 compared with the previous year indicates that the improvement in the airline’s financial result has not been driven by a substantial increase in traffic alone. Cost management, route performance and pricing are also relevant to its earnings. Network expansion will bring additional operating commitments, including aircraft capacity, marketing, crew and airport services, before passenger demand on new routes is fully established.
Air Montenegro’s performance also has implications for Montenegro’s wider economy, given the role of air connectivity in tourism, business travel and investment. Additional year-round connections can improve access to European business centres and support hotel occupancy outside the main summer season. The airline’s financial position combines a profit exceeding €2 million and cash holdings of approximately €11 million with the prospect of a €7 million increase in fuel costs. Its ability to maintain profitability will depend on managing that expenditure while expanding its network and competing for passengers during the winter season.
