AS Sustainability Report

2025

SUSTAINABILITY REPORT

First Annual Sustainability Report

Sustainability Report

CONTENTS

05 MATERIALITY ANALYSIS AND STAKEHOLDER ENGAGEMENT

ABOUT THE REPORT

08 ECONOMIC VALUE AND CONNECTIVITY

02 02 02 02 02 02

45 47 51 51

18 18 19 21 22 23 24

5.1 Approach to materiality 5.2 Process to determine material topics 5.3 Stakeholder engagement 5.4 List of material topics 5.5 Materiality matrix 5.6 Management of material topics 5.7 Mapping of material topics to GRI topic standards

8.1 Financial sustainability and resilience 8.2 Network and destination development 8.3 Connecting the regions - PSO routes 8.4 Procurement and supply chain

1.1 Organizational details 1.2 Entities included in the report 1.3 Reporting period, frequency and contact point 1.4 Restatements of information 1.5 External assurance 1.6 GRI reporting framework statement

CEO LETTER

06 GOVERNANCE

09 SOCIAL

54 60 63 65 66

9.1 Our people 9.2 Community and social responsibility 9.3 Inclusion and accessibility 9.4 Customer experience 9.5 Flight safety and security

6.1 Corporate governance and sustainability framework 6.2 Sustainability governance - the Sustainability Committee 6.3 Corporate integrity mechanisms 6.4 Ethics and compliance 6.5 Data protection and cyber security

26 30 32 34 36 37 37 37

03 AIR SERBIA’S STORY

6.6 Operational safety and quality standards 6.7 Employment Rulebook, grade-based system 6.8 Memberships and associations

04 AIR SERBIA IN 2025 - YEAR IN REVIEW

07 ENVIRONMENT

10 APPENDIX

4.1 Company at a glance 4.2 Network expansion and growth

06 06 10 11 15

71 74 81 83

7.1 Environmental management 7.2 Emissions management and decarbonization 7.3 Fleet modernization and efficiency 7.4 Energy, noise and environmental initiatives

39 40 41 42

10.1 Abbreviations and Acronyms 10.2 GRI content index 10.3 UNGC Content Index 10.4 Materiality assessment - detailed results

4.3 Awards and recognition 4.4 Sustainability strategy 4.5 Activities, value chain and business relations

Sustainability Report

Introduction

Materiality analysis and stakeholder engagement

CEO letter

Air SERBIA’s Story

Air Serbia in 2025 - year in review

Governance

Environment

Economic value and connectivity

Social

Appendix

01. ABOUT THE REPORT

1.1 Organizational details

1.4 Restatements of information

Air Serbia a.d. Beograd is a joint-stock company wholly owned by the Republic of Serbia, with 100% state ownership since 2023. The company's registered seat is located at, with its operational hub at Belgrade Nikola Tesla Airport. Air Serbia operates in the Republic of Serbia and maintains a presence, through representative offices, in the United States, Montenegro, Bosnia and Herzegovina, Germany, Croatia, North Macedonia, Russia, Canada and Switzerland.

No restatements of previously reported information apply to this report, as this is Air Serbia's first sustainability report prepared in accordance with the GRI Standards.

1.5 External assurance

No external assurance was sought for this first Sustainability Report. The report underwent an internal review and validation process, led by the Sustainability Manager and involving relevant organizational units, with final approval by the CEO. Air Serbia will assess external assurance for future reporting cycles.

1.2 Entities included in the report

This report covers Air Serbia a.d. Beograd.

1.3 Reporting period, frequency and contact point

1.6 GRI reporting framework statement

This report covers the period 1 January - 31 December 2025. This is Air Serbia's first Sustainability Report, published on September 11, 2026. The company intends to publish this report on an annual basis going forward. The reporting period aligns with the period covered by the company's financial statements Ivana Kosić, Sustainable Development Manager, serves as the contact point for this report and can be reached at ivana.kosic@airserbia.com for any questions.

Air Serbia has reported in accordance with the GRI Standards for the period 1 January - 31 December 2025. GRI 1: Foundation 2021 has been used as the basis for this report. No applicable sector standard is currently in force for the aviation sector.

Sustainability Report 02

CEO letter

Materiality analysis and stakeholder engagement

Introduction

Air SERBIA’s Story

Air Serbia in 2025 - year in review

Governance

Environment

Economic value and connectivity

Social

Appendix

02. CEO LETTER

Dear stakeholders,

I am proud to present Air Serbia's first Sustainability Report, a milestone in our nearly hundred-year history, and an important step in how we communicate openly with the people who fly with us, work with us, and place their trust in our company. 2025 was a year of strong growth. We carried 4.57 million passengers, up 2.9% on the previous year, and on 28 December we surpassed the passenger record set by our predecessor JAT back in 1987. We opened a new intercontinental market with our Belgrade - Shanghai route, grew our network to 93 destinations, and continued to modernize our fleet. This performance was recognized externally: for the second year running, Global Traveler named us Best Airline in Eastern Europe, and for the first time, Skytrax ranked us among the world's Top 100 airlines. This report is also where we take a more structured look at our responsibilities beyond the flight schedule. This year we conducted Air Serbia's first materiality assessment, asking our employees, passengers and stakeholders directly what matters most. The answers flight safety, workforce stability, occupational health and safety, financial resilience, and data protection now shape a sustainability strategy built around four pillars: safe and reliable operations, our people, climate and environment, and responsible business.

Our people made this year possible. With 1,533 employees on average, 48.7% of them women, we invested in their growth, doubling our Pilot Cadet Programme and growing the share of women in our cockpit crew. We also stayed close to our community, from our partnership with the SOS Children's Villages Serbia Foundation, recognized as Serbia's best socially responsible campaign of the year, to flying citizens home in moments of crisis and supporting patients seeking medical care abroad. We are honest about where we still have work to do. Aviation is an energy-intensive industry, and this report marks the start of our formal climate disclosure journey rather than its conclusion. Where we don't yet have complete data or quantified targets, we have said so, because for a first report, credibility matters more than the appearance of having everything figured out. Thank you to our employees, passengers, partners and our shareholder, the Republic of Serbia, for your continued trust. This report is our starting point, we look forward to showing you our progress, year after year.

Jiri Marek Chief Executive Officer

Sustainability Report 03

Air SERBIA’s Story

Materiality analysis and stakeholder engagement

Introduction

CEO letter

Air Serbia in 2025 - year in review

Governance

Environment

Economic value and connectivity

Social

Appendix

03. AIR SERBIA’S STORY Since 1927 - connecting Serbia to the world for almost a century.

1927 FOUNDED AS AEROPUT

98 YEARS OF FLYING

4 CONTINENTS SERVED

100% OWNED BY REPUBLIC OF SERBIA

1927 - 1938

1947 - 1989

1970 - 1989

1990 - 2006

2013- 2019

2020 - 2025

STRATEGIC LEAP

GLOBAL REACH

TESTING RESILIENCE

FULL INDEPENDENCE

A FRESH START

TAKING FLIGHT

10th

5M+

1963

years of continuous operation before becoming Jat Airways

new Airbus aircraft in under a year

passengers a year at the 1987 peak

direct long-haul routes to China, launched between 2022 and 2025

entry into the jet age of aviation

airline in Europe from the very start

Founded in 1927, Aeroput was already flying the Belgrade-Zagreb route by 1928, and by 1938 was hosting an international aviation exhibition

After the war, JAT resumed flying in 1947, and within 22 years its fleet included the first jet aircraft and the Boeing 707.

A round-the-world route in 1974, the first wide-body aircraft in 1978, and by 1987 Serbia was connected to 5 continents through 61 destinations.

War, sanctions and an embargo halted flights to the US in 1992. The company kept operating regardless, transforming into Jat Airways in 2003 and earning an IATA safety certificate in 2005 - among the first in Europe.

The 2013 partnership with Etihad gave rise to Air Serbia, women began flying its aircraft for the first time in 2014, and in 2016 the New York route returned after 24 years

Air Serbia raised its ownership stake from 82% (2020) to 100% (2023) and opened direct routes to Tianjin, Guangzhou, Chicago and Shanghai.

Sustainability Report 04

AIR SERBIA IN 2025 - YEAR IN REVIEW 04.

4.1 Company at a glance 4.2 Network expansion and growth

06 06 10 11 15

4.3 Awards and recognition 4.4 Sustainability strategy 4.5 Activities, value chain and business relations

Sustainability Report

Air Serbia in 2025 - year in review

Materiality analysis and stakeholder engagement

Introduction

CEO letter

Air SERBIA’s Story

Governance

Environment

Economic value and connectivity

Social

Appendix

2025 was a year of growth for Air Serbia, marked by the expansion of the route network, the strengthening of the fleet and a series of external recognitions. This chapter provides a high-level overview of the year’s achievements; the topics summarized here are addressed in greater depth in the relevant chapters that follow. 04. AIR SERBIA IN 2025 YEAR IN REVIEW

4.1 Company at a glance

Chicago That standard starts with how we do business. Every employee at Air Serbia is covered by our Code of Business Conduct, and our approach to ethics, anti-corruption and regulatory compliance. Our full record on legal actions and confirmed incidents in 2025 , is set out in detail in Chapter 6.4. The same holds for safety: Air Serbia maintains active registration under the IATA Operational Safety Audit (IOSA) programme, one of the most rigorous standards in commercial aviation, with our complete certification landscape presented in Chapter 9.5. Nearly a century after taking to the skies for the first time, Air Serbia today connects the Republic of Serbia with more than 90 destinations across Europe, the Mediterranean, the Caucasus, North Africa, Asia and North America , flown from its home base at Belgrade Nikola Tesla Airport. Behind that network stands an average workforce of 1,533 people, of whom 48.7% are women, including a growing share of female pilots taking to the cockpit. It is this combination , the heritage of a flag carrier nearly one hundred years in the making, matched with the operating standards expected of a modern airline , that defines who we are.

passengers carried in 2025 (+2.9%) 4.57M

destinations served 90+

of employees covered by the Code of Business Conduct 100%

average employees 1,533

women in the workforce 48.7%

substantiated data privacy complaints in 2025 Zero

New York

In 2025, the network expanded from 90 destinations served in 2024 to 93 destinations in 2025, an increase of 3%. This growth reflects both the opening of new long-haul markets (notably the Serbia - China corridor) and the strengthening of Belgrade's role as a regional connecting hub for Europe, the Mediterranean and the Caucasus. 4.2 Network expansion and growth

network growth +3%

available seat km, ASK (bn) 7.6

destinations served (2025) 90+

Sustainability Report 06

Air Serbia in 2025 - year in review

Materiality analysis and stakeholder engagement

Introduction

CEO letter

Air SERBIA’s Story

Governance

Environment

Economic value and connectivity

Social

Appendix

DESTINATION MAP

St. Petersburg

Oslo

Stockholm-Arlanda

Goteborg

Kazan

Moscow

Copenhagen

Hamburg

Berlin

Amsterdam

Krakow

London

Duesseldorf

Hannover

Chicago

Cologne

Brussels

Frankfurt

New York

Prague

Hahn

Shaghai

Nuremberg

Stuttgart

Guangzhou

Salzburg

Paris

Vienna

Budapest

Zurich

Ljubljana

Geneva

Zagreb

Venice

Milan

Rijeka

Kraljevo

Bucharest

Pula

Banja Luka

Zadar

Sarajevo

Adler/Sochi

Split

Bologna

Nis

Mostar

Dubrovnik

Nice

Podgorica

Varna

Florence

Sofia

Tivat

Skopje

Tbilisi

Barcelona

Rome

Tirana

Ohrid

Madrid

Bari

Kavala

Porto

Thessaloniki

Naples

Ankara

Istanbul

Preveza/Lefkas

Alghero

Corfu

Palma de Mallorca

Skiathos

Kefalonia Zakinthos

Izmir-Adnan Mend

Palermo

Lisbon

Athens

93 destinations

Valencia

Bodrum

Catania

Dalaman

Malaga

Antalya

Rhodes

Malta

Monastir

Chania, Crete

Heraklion

Larnaca

Mersa Matruh

Hurghada

Sustainability Report 07

Air Serbia in 2025 - year in review

Materiality analysis and stakeholder engagement

Introduction

CEO letter

Air SERBIA’s Story

Governance

Environment

Economic value and connectivity

Social

Appendix

A record-breaking year for passenger numbers

The Serbia - China corridor

New and reintroduced routes

Some records take decades to fall. This one took thirty-eight years.

On 11 January, Air Serbia launched a direct service between Belgrade and Shanghai, connecting Belgrade Nikola Tesla Airport with Shanghai Pudong International Airport, one of the principal aviation hubs of East Asia. The route was reinforced by a codeshare agreement with China Southern Airlines, extending connectivity in both directions, and by a tourism cooperation agreement with the travel platform Trip.com aimed at promoting two-way tourism between Serbia and China. Together, these steps opened a new intercontinental market for the company and strengthened links between Serbia and East Asia.

Air Serbia further expanded its network with new and reintroduced routes, including Belgrade-Tbilisi, Belgrade-Geneva, Belgrade-Alghero and Belgrade-Mykonos, improving connectivity with the Caucasus, Western Europe and Mediterranean leisure destinations and creating additional onward connections through Belgrade.

On 28 December 2025, Air Serbia carried its 4.57 millionth passenger of the year, and with it, quietly broke a record that had stood since 1987., when JAT, flying under a very different flag and in a very different Europe, set the bar for how many people one airline from Belgrade could carry in a single year. Back then, JAT flew in a market with far fewer alternatives, far fewer open skies, and far less competition. Beating that number today against a completely different competitive landscape, says something the raw figure alone can't quite capture: that Belgrade's place in the sky is not just being restored, it's being outgrown. The climb to get here wasn't a single leap. Passenger numbers have risen steadily since 2022, and 2025 added another 2.9% on top of 2024's 4.44 million , proof that the growth is not a one-off spike but a trend the company can build on. And this single year's milestone sits inside an even bigger one: since the airline became Air Serbia in 2013, more than 35 million people have chosen to fly with it.

Thirty-five million journeys. One broken record. And, everything suggests more to come.

growth vs. 2024 +2.9%

year of the previous record, set by predecessor JAT now surpassed 1987

passengers flown since rebranding to Air Serbia (2013) 35M+

Shanghai

Sustainability Report 08

Air Serbia in 2025 - year in review

Materiality analysis and stakeholder engagement

Introduction

CEO letter

Air SERBIA’s Story

Governance

Environment

Economic value and connectivity

Social

Appendix

Fleet growth

The company continued to expand and modernize its fleet during 2025, including the addition of a fourth wide-body Airbus A330-200 and a new Embraer E195, both strengthening the airline's own fleet capacity.

Fleet capacity was further supplemented through ACMI (wet-lease) partnerships. Since 2024, Air Serbia has maintained an ACMI agreement with Bulgaria Air, and from November 2025, this was further expanded through a wet-lease partnership with airBaltic, under which two Airbus A220-300 aircraft joined Air Serbia's operations for the 2025 winter season, with the arrangement set to expand to four aircraft for the 2026 summer season.

AIRBUS A330-200 Nikola Tesla

AIRBUS A330-200 Mihajlo Pupin

AIRBUS A330-200 EXPO 2027

FLEET: 1

FLEET: 2

AIRBUS A320

AIRBUS A319

ATR72 - 600

CARGO CUSTOMERS

FLEET: 3

FLEET: 10

Freight forwarders and cargo customers served across short-, medium- and long-haul routes.

EMBRAER E195

FLEET: 2

Sustainability Report 09

Air Serbia in 2025 - year in review

Materiality analysis and stakeholder engagement

Introduction

CEO letter

Air SERBIA’s Story

Governance

Environment

Economic value and connectivity

Social

Appendix

Air Serbia’s performance was recognized through a number of external awards during the year: 4.3 Awards and recognition

Best Airline in Eastern Europe

Best regional airline

Best socially responsible campaign

An industry analysis published by the Centre for Aviation (CAPA) highlighted Air Serbia as one of the most successful airlines in Europe in terms of passenger growth and network expansion. The analysis noted an average annual passenger growth rate of 10% between 2019 and 2024, growth of the destination network from 59 to 83 airports served, and an increase in the company's share of seat capacity at Belgrade Airport from 43% in 2018 to 52% in 2025. Recognition of Air Serbia's growth and market position

Among the world's top 100 airlines (Skytrax)

Celebrating heritage and national identity

For the first time, Air Serbia was ranked among the Top 100 World's Best Airlines in the Skytrax World Airline Awards , one of the industry's most prestigious recognitions, based on the ratings and experiences of passengers worldwide. The company also took third place in the category of Best Regional Airlines in Europe and ranked third among Best Airlines in Eastern Europe.

For the second year in a row, Air Serbia was named the Best Airline in Eastern Europe in the annual survey by the US magazine Global Traveler, based on more than one million votes from respondents rating their travel experiences. Awards based on this survey are regarded as among the most significant recognitions in the aviation industry.

At the international forum Aviation and Tourism: Challenges and Opportunities in Athens, held as part of the Summer Aviation Forum, Air Serbia was named the best regional airline, recognizing the company’s performance over the past period.

Air Serbia's new visual identity, Tradition elevated , connecting the airline's heritage with a contemporary expression of Serbian culture and hospitality, received two silver awards and one bronze award at the 65th anniversary awards of the Serbian Marketing Communications Association (UEPS), recognizing the campaign's promotion of national values, tradition and Serbian creativity abroad.

The humanitarian initiative My First Flight with Air Serbia - a Journey to Remember , carried out with the SOS Children’s Villages Serbia Foundation, was named the best socially responsible campaign of the year in the Social category at the Campaigns with Purpose 2025 awards.

Sustainability Report 10

Air Serbia in 2025 - year in review

Materiality analysis and stakeholder engagement

Introduction

CEO letter

Air SERBIA’s Story

Governance

Environment

Economic value and connectivity

Social

Appendix

Sustainability is integral to how Air Serbia operates as the national flag carrier of the Republic of Serbia. Our approach is anchored in the belief that long-term commercial success, responsible operations and meaningful contributions to society reinforce one another. Building on the materiality assessment described in Chapter 5, our sustainability strategy is structured around four strategic pillars, supported by clear targets, governance oversight and alignment with internationally recognized frameworks. 4.4. Sustainability strategy

Safe and reliable operations

Our people

Climate and environment

Responsible business

Operational safety is the non-negotiable foundation of everything we do. We maintain a comprehensive Safety Management System (SMS), continuous investment in training and technology, and a Just Culture that encourages voluntary reporting of safety concerns. Flight safety and occupational health and safety have both been identified as material topics for our company and are addressed in detail in Chapters 9.1 and 9.5.

With 1,533 employees on average, our workforce is our most valuable asset. We focus on workforce stability, talent development, fair compensation, gender balance, occupational health, and creating a respectful and inclusive workplace. Workforce stability is a material topic, reported in detail in Chapter 9.1.

Aviation is energy-intensive, and reducing our environmental footprint is a long-term commitment. We focus on fleet modernisation, fuel efficiency, gradual integration of Sustainable Aviation Fuels (SAF), participation in EU ETS and CORSIA, and managing noise, water and waste at our hub and across the network. Our environmental performance is reported in Chapter 7.

Trust is earned through transparent governance, ethical conduct, protection of personal data, and constructive relationships with all stakeholders, from passengers and employees to suppliers, communities and regulators. Financial sustainability and data protection have both been identified as material topics and are addressed in Chapters 7 and 6.5 respectively.

Sustainability Report 11

Air Serbia in 2025 - year in review

Materiality analysis and stakeholder engagement

Introduction

CEO letter

Air SERBIA’s Story

Governance

Environment

Economic value and connectivity

Social

Appendix

Our targets and commitments

Industry commitments Air Serbia supports the global industry commitment to net-zero CO emissions from international aviation by 2050, in line with the IATA Resolution on Net Zero Carbon Emissions and the long-term aspirational climate goals of the International Civil Aviation Organization (ICAO). The company complies with all applicable obligations under the European Union Emissions Trading System (EU ETS) for its operations in the European Economic Area, and participates in the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

Air Serbia's sustainability strategy is at an early stage of formalization. As this is the company's first materiality assessment and first sustainability report, the priority for the current reporting cycle has been to establish a clear understanding of material topics, baseline performance and governance structures. Building on this foundation, the company intends to develop formal, quantified targets across its four strategic pillars in the period ahead. Air Serbia intends to publish quantified sustainability targets, with defined baselines and timelines, starting with the report covering the 2026 or 2027 financial year

In the area of safe and reliable operations, the ambition is to sustain the company's strong safety record while continuously strengthening its Safety Management System, with no tolerance for serious safety incidents.

In the area of our people, Air Serbia aims to build on its current gender balance and workforce stability, and will continue to monitor its performance in these areas as its sustainability reporting practices mature.

In the area of climate and environment, Air Serbia's near-term focus remains on fleet modernisation, operational efficiency and the gradual integration of Sustainable Aviation Fuel (SAF), building on emissions data already measured and verified. The company will continue to develop its climate reporting framework and to define more specific targets in future reporting cycles.

In the area of responsible business, the company aims to continue strengthening its governance, ethics and data-protection practices, building toward more clearly defined commitments in future cycles.

Sustainability Report 12

Air Serbia in 2025 - year in review

Materiality analysis and stakeholder engagement

Introduction

CEO letter

Air SERBIA’s Story

Governance

Environment

Economic value and connectivity

Social

Appendix

Alignment with the UN Sustainable Development Goals Our strategy aligns with and contributes to the following UN Sustainable Development Goals, which we have prioritised on the basis of our materiality assessment and the nature of our business as an air carrier.

As an air carrier, our most fundamental contribution to public health is the safe and reliable operation of every flight, supported by certified aviation safety management. Internally, our occupational health and safety management system covers 100% of employees, contractors and third-party workers on Air Serbia premises. In 2025 we recorded zero work-related fatalities, delivered 4,523 hours of OHS training, and continued to invest in workplace health promotion through systematic medical examinations, mental health support and employee well-being initiatives. As one of the leading aviation training environments in the region, Air Serbia invests significantly in formal education and continuous professional development. In 2025 we delivered 24,440 hours of specialised training to our employees , a 72% increase over 2024 , alongside 13,016 hours of mandatory safety and security training. Ten leaders completed our Leadership Development Programme, and we doubled the intake of our Pilot Cadet Programme from 10 to 20 cadets, creating a structured pathway into commercial aviation for the next generation of Serbian pilots.

SDG 3 Good Health and Well-being

SDG 4 Quality Education

Women make up 48.7% of our workforce and 47.8% of managerial positions. In 2025, we expanded the Equal Opportunity Policy, doubled the number of cadets enrolled in our Pilot Cadet Programme from 10 to 20, and grew the share of female pilots in our cockpit crew from 3.7% to 4.7%, a 33% year-on-year increase in absolute terms. A first comprehensive gender-pay analysis was conducted across all major job families, with no meaningful pay gap identified in cabin crew, captain and first-officer roles.

SDG 5 Gender Equality

As one of the largest employers in the Serbian aviation sector, the company contributes to the national economy through employment, taxes paid, supplier spend and connectivity. In 2025 we welcomed 252 new colleagues, supported 184 internal promotions across the organisation (an internal promotion rate of 12.2%), and invested 24,440 hours in specialised training , a 72% increase over 2024 , alongside 13,016 hours of mandatory safety and security training.

SDG 8 Decent Work and Economic Growth

Our continued fleet modernisation, expansion of the Belgrade hub and investment in digital transformation support the development of resilient transport infrastructure. During 2025 we added a wide-body Airbus A330-200 alongside a new Embraer E195 and an Airbus A220-300 operated under an ACMI arrangement, opened the Belgrade - Shanghai route reinforcing the Serbia - China corridor, and completed the transition of our Cabin Crew Manual to a fully digital format, with more than 1,000 in-flight reports digitised every month.

SDG 9 Industry, Innovation and Infrastructure

Sustainability Report 13

Guangzhou

Air Serbia in 2025 - year in review

Materiality analysis and stakeholder engagement

Introduction

CEO letter

Air SERBIA’s Story

Governance

Environment

Economic value and connectivity

Social

Appendix

As part of its environmental commitments, Air Serbia works to reduce waste and the use of non-renewable materials across its operations, including the introduction of bamboo cutlery across the network to replace single-use plastics, alongside efforts to monitor and manage water withdrawal and waste generated in our operations. Responsible sourcing is embedded from the outset of the procurement process: every one of the company's 1,571 active suppliers signs a Supplier Declaration confirming compliance with occupational health and safety, employment and environmental obligations.

SDG 12 Responsible Consumption and Production

We are working to reduce the carbon intensity of our operations through fleet renewal, fuel-efficient flight planning, gradual SAF integration and participation in international carbon-pricing schemes. Fleet renewal , including the introduction of newer-generation Airbus and Embraer aircraft during 2025 , remains the most material lever available to us in the short term. We will progressively expand quantitative climate disclosures in future reporting cycles as our environmental data framework matures.

SDG 13 Climate Action

Trust and integrity are foundational to how Air Serbia operates. The company's Code of Business Conduct sets out a zero-tolerance approach to corruption and anti-competitive conduct, and in 2025 Air Serbia recorded zero confirmed incidents of corruption and zero whistleblowing cases. Employees and third parties can raise concerns confidentially, and where preferred anonymously, through a 24-hour independent Ethics Line.

SDG 16 Peace, Justice and Strong Institutions

Our codeshare relationships, industry memberships and cooperation with public-sector partners advance shared objectives in connectivity, tourism and aviation safety. In 2025 we deepened the Serbia - China corridor through a codeshare with China Southern Airlines and a tourism cooperation agreement with Trip.com, and continued our long-running partnership with the SOS Children's Villages Serbia Foundation through the My First Flight with Air Serbia , a Journey to Remember humanitarian initiative, which was recognized as Best Socially Responsible Campaign at the Campaigns with Purpose 2025 awards.

SDG 17 Partnerships for the Goals

Governance of sustainability Implementation of this strategy is overseen by the Sustainability Committee, chaired by the Sustainability Manager. The Committee reviews progress against targets and submits an annual report on its work to the CEO, covering the activities conducted, tasks completed, risks identified, key conclusions and recommendations for improving ESG performance and sustainability management. The Committee's mandate, composition and 2025 activities are described in Chapter 6.2

Sustainability Report 14

Air Serbia in 2025 - year in review

Materiality analysis and stakeholder engagement

Introduction

CEO letter

Air SERBIA’s Story

Governance

Environment

Economic value and connectivity

Social

Appendix

Air Serbia is the national flag carrier of the Republic of Serbia, providing scheduled passenger and cargo air transport from its hub at Belgrade Nikola Tesla Airport. The company is wholly owned by the Republic of Serbia and operates a fleet of 29 aircraft that fly to 93 destinations across Europe, the Mediterranean, the Caucasus, North Africa, Asia and North America. 4.5 Activities, value chain and business relations Our core activities are scheduled passenger services and air cargo carried in the belly hold of passenger aircraft. The company also engages ACMI (Aircraft, Crew, Maintenance, Insurance) and wet-lease arrangements to supplement its own fleet capacity, most notably through the Embraer E190 and Airbus A220-300 aircraft introduced in 2025. Passenger transport remains the predominant source of revenue, complemented by a growing cargo operation. Business activities

Air Serbia serves a diverse customer base across multiple segments: Markets and customer segments

Connecting passengers

Leisure travellers

Cargo customers

Visiting friends and relatives Structurally important segment for an airline serving a country with a large global diaspora.

Business travelers

Corporate and business travel, particularly on intra-European and intercontinental routes.

Travellers transiting through Belgrade between Europe, the Mediterranean, the Caucasus, North Africa, Asia and North America.

Travellers flying to and from Serbia, supported by an extensive network across Europe, the Mediterranean, the Caucasus, North Africa, Asia and North America.

Freight forwarders and cargo customers served across short-, medium- and long-haul routes.

Sustainability Report 15

Air Serbia in 2025 - year in review

Materiality analysis and stakeholder engagement

Introduction

CEO letter

Air SERBIA’s Story

Governance

Environment

Economic value and connectivity

Social

Appendix

Our value chains

Upstream Our principal supplier and partner relationships include: aircraft and engine manufacturers (Airbus, Embraer and engine OEMs); aircraft lessors; aviation fuel suppliers; maintenance, repair and overhaul (MRO) providers; ground-handling service providers at Belgrade and across our network; in-flight catering suppliers; technology and IT vendors; training providers; and distribution partners, including global distribution systems, online travel agencies, the company website and direct sales channels. In 2025, Air Serbia worked with approximately 1,571 active suppliers, with 38.3% registered in the Republic of Serbia.

Downstream Our customers comprise individual passengers, corporate clients with negotiated travel agreements, travel agencies, tour operators, cargo customers and freight forwarders. In 2025, the company carried 4.57 million passengers across the network.

Our operations Air Serbia operates from its hub at Belgrade Nikola Tesla Airport, with additional operational presence in Niš and Kraljevo. Part of the company's customer contact centre and ground crew are based at Niš Constantine the Great Airport. The airline operates scheduled services from Belgrade, and from the regional airports of Niš and Kraljevo, including routes operated under Public Service Obligation arrangements with the Republic of Serbia. Day-to-day operational activities span flight operations, cabin operations, ground operations, maintenance and technical engineering, network planning, commercial sales and revenue management, customer experience, IT, procurement and corporate support functions. The company employs an average of 1,533 people, with employees based in Belgrade and Niš.

Key business relationships Air Serbia is wholly owned by the Republic of Serbia. The company maintains commercial cooperation and interline agreements with a range of partner airlines, complementing its own network and enabling connectivity for passengers travelling beyond destinations served directly by Air Serbia. The most significant new strategic relationship of 2025 was the deepening of the Serbia - China corridor, supported by a dedicated codeshare agreement with China Southern Airlines and a tourism cooperation agreement with the Trip.com travel platform, together opening a new intercontinental market for the company and strengthening links between Serbia and East Asia.

Air Serbia is a member of the International Air Transport Association (IATA) and the European Regions Airline Association (ERA).

Sustainability Report 16

MATERIALITY ANALYSIS AND STAKEHOLDER ENGAGEMENT 05.

18 18 19 21 22 23 24

Sustainability Report

Materiality analysis and stakeholder engagement

Introduction

CEO letter

Air SERBIA’s Story

Air Serbia in 2025 - year in review

Governance

Environment

Economic value and connectivity

Social

Appendix

05. MATERIALITY ANALYSIS AND STAKEHOLDER ENGAGEMENT The materiality analysis forms the foundation of this sustainability report. Its purpose is to identify which economic, environmental and social topics - including impacts on human rights - are most important for Air Serbia and its stakeholders, and on that basis to guide the content of the report and management priorities. The process was conducted in accordance with the requirements of GRI 3: Material Topics 2021, which defines the process for determining material topics (GRI 3-1), the presentation of the list of material topics (GRI 3-2) and the management of topics (GRI 3-3). 5.2 Process to determine material topics Context The process was carried out in four steps, in line with the methodology of GRI 3:i

The business model, activities, business relationships and broader sustainability context of the aviation sector were analysed - including climate impacts, regulatory framework and expectations of passengers and local communities.

As this is Air Serbia's first formal materiality assessment and the first sustainability report prepared in accordance with the GRI Standards, the 2025 reporting cycle establishes the company's baseline. All 18 candidate topics, both those identified as priorities and those flagged for monitoring , are therefore presented in detail in this report, with their individual ratings, position in the matrix and management approach disclosed transparently. Future reporting cycles will build on this baseline by comparing changes in the list of topics and shifts in their prioritization.

Based on sector sources, internal documents and consultations with stakeholders, an initial list of 18 topics was compiled, grouped into the areas of environment (E), social (S) and governance (G). Identification The importance of each topic was rated through a structured questionnaire on a scale of 1 to 5, completed by three groups of respondents - employees, other stakeholders and passengers. Assessment

5.1 Approach to materiality

The approach to materiality is based on the principle of significance of impacts: a topic is considered material if it reflects the organization’s significant actual or potential impacts on the economy, the environment and people. In addition to the impact perspective prescribed by GRI, the assessment also incorporates the expectations and interests of key stakeholders, providing a balanced view of topics that are at once significant for society and the environment and relevant to the company’s business model. The results are presented in the form of a materiality matrix with two axes: the horizontal axis (X) represents the internal view - the importance of a topic to employees - while the vertical axis (Y) represents the external view - the average rating of stakeholders and passengers. The position of each topic relative to the average values of both axes determines its priority.

Prioritization 04

Topics were ranked according to the ratings obtained and positioned in the matrix. Topics whose ratings exceed the average values on both axes are treated as priorities

Sustainability Report 18

Materiality analysis and stakeholder engagement

Introduction

CEO letter

Air SERBIA’s Story

Air Serbia in 2025 - year in review

Governance

Environment

Economic value and connectivity

Social

Appendix

Adoption of the list of material topics The final list of 18 material topics was presented to the Sustainability Committee, which reviewed and adopted it. This ensured oversight and approval by the highest level of governance over the process of determining material topics and the content of sustainability reporting (GRI 2-14). Methodology Each of the 18 candidate topics was rated on a scale of 1 to 5 (1 = negligible significance, 5 = extremely high significance) by three respondent groups: employees, passengers and other external stakeholders. The internal view (X axis) is based on employee ratings, while the external view (Y axis) is calculated as the average of stakeholder and passenger ratings. The materiality thresholds are defined as the average of all ratings per axis: 4.04 on the X axis and 4.18 on the Y axis. Stakeholders' involvement in the process is described in Section 4.3.

5.3 Stakeholder engagement

Air Serbia's key stakeholders are the groups whose activities affect, or are affected by, the company's operations. The initial mapping of stakeholder groups was developed by the Sustainability function based on a review of disclosure practices across comparable airlines and international sustainability reporting guidance. This initial mapping was then evaluated internally through a company-wide consultation, in which each organizational unit identified the stakeholders most relevant to its area of activity. The consolidated list was presented to the Chief Executive Officer and formally adopted, ensuring that the final stakeholder map reflects both external good practice and the operational reality of the company. The purpose of stakeholder engagement is twofold: to inform the company's decision-making on material economic, environmental and social topics, and to provide accountability through transparent communication. The methods, frequency and key topics for each group are presented in the table below.

Sustainability Report 19

Materiality analysis and stakeholder engagement

Introduction

CEO letter

Air SERBIA’s Story

Air Serbia in 2025 - year in review

Governance

Environment

Economic value and connectivity

Social

Appendix