Etihad Airways will keep its 49% stake in Serbian flag career Air Serbia, and thus extend its current five-year management agreement with the company which is due to expire on January 1, 2019, Air Serbia announced.

“Air Serbia and Etihad Airways agreed that [the] equity partnership of [the] two airlines is going to be continued. Etihad continues to own 49% of Air Serbia and remains a fully committed and supportive shareholder in partnership with Air Serbia’s majority shareholder, the government of Serbia,” reads Air Serbia’s press release.

Air Serbia, a 51-49 joint venture between the Serbian state and Etihad Airways, the second-largest airline of the UAE, emerged as a rebranded company following an August 2013 deal between the two to revitalise troubled Jat Airways. Since then, Air Serbia has set a goal of becoming the regional leader. 

“Five years after the commencement of the successful equity partnership with Etihad Airways, Air Serbia is now fully standing on its own feet under the constructive supervision of its two shareholders, the government of Serbia and Etihad. We are excited about Air Serbia’s perspectives and the continuation of our successful equity partnership with Etihad,” Serbia’s Prime Minister Ana Brnabic said.

According to the newest company statistics released on July 2, Air Serbia, improved its operations in 2017 and reported a net profit of €15.7mn, which represents an increase of €14.8mn compared to 2016. In its fourth year of operation, the airline’s total operating income reached €288mn. Meanwhile, operating expenses decreased by 7%, while at the same time, sales revenue was increased by 4%.

The total number of passengers carried in 2017 remained in line with the previous year. However, the company says that despite the airline consolidating its network and facing a sharp increase in competition, it has welcomed more than 2.62mn passengers. The Serbian national airline’s passenger carrying capacity, measured in Available Seat Kilometres (ASKs), increased by 4% to 4.24bn by the end of 2017, reads the press release posted on the company’s website.

In addition to these achievements, the Serbian flag carrier celebrated two major operational milestones in 2017: the 90th anniversary of the establishment of Aeroput, its predecessor, and welcoming its 10 millionth guest since being rebranded as Air Serbia in 2013.