Tarom, the state-owned Romanian airline, estimates that it will register a net profit of RON 278 million (EUR 55.9 million) in 2024, after losses of RON 99.4 million (EUR 20 million) in 2023, according to this year’s revenue and expenditure budget. The company has been losing money since 2007. 

The airline’s management states in the budget review that the projected profit for this year is expected to partially cover losses from previous years. As a result, overdue payments are anticipated to decrease from RON 340 million in 2023 to an estimated RON 115 million by the end of 2024.

According to the budget, investment funding sources for 2024 are estimated at RON 236 million, out of which RON 109 million will come from the state budget.

Tarom estimates that it will reach RON 2.05 billion in expenses this year, an increase of 8.96% compared to the estimated/realized value for 2023. Operating expenses are estimated at RON 1.62 billion, and financial expenses at about RON 426 million.

Tarom also has a Restructuring Plan that has been submitted to the European Commission. Among the measures aimed at increasing operational efficiency, the airline plans to renew its fleet, cease operations on certain routes, sell or lease the slot at London’s Heathrow Airport, capitalize on shares in other companies, and lease free land and office buildings.

radu@romania-insider.com

(Photo source: Colicaranica | Dreamstime.com)