Economic value and connectivity
Materiality analysis and stakeholder engagement
Introduction
CEO letter
Air SERBIA’s Story
Air Serbia in 2025 - year in review
Governance
Environment
Social
Appendix
08. ECONOMIC VALUE AND CONNECTIVITY
8.1 Financial sustainability and resilience Management approach
Component
Unit
2024
2025
Financial sustainability and resilience is one of Air Serbia’s highest-priority material topics, of significance both to the company internally and to its external stakeholders. As the national carrier, Air Serbia connects the Republic of Serbia to regional and intercontinental markets, supports the wider economy through employment, procurement and tourism, and is wholly owned by the Republic of Serbia. The company’s long-term ability to operate, invest and grow depends on maintaining a sound and resilient financial position. Air Serbia manages this topic through disciplined financial planning, cost control, revenue and network optimization, and prudent management of its fleet investments (see Chapter 7.3). Financial performance is monitored by the Finance and Controlling function, through financial planning and analysis and regular reporting on a monthly basis, and is overseen at Board level by the Supervisory Board and the Shareholders' Assembly. The company assesses financial risks and opportunities, including those arising from climate-related regulation, fuel-price volatility and macroeconomic conditions, as part of its planning cycle. The disclosures that follow set out the economic value the company generates and distributes, the financial implications of climate change, its pension arrangements, and the financial relationship between the company and the State. Direct economic value generated and distributed The direct economic value generated and distributed (EVG&D) shows how the value Air Serbia creates through its operations flows to its stakeholders, employees, suppliers, the State and the community, and how much is retained to support future operations and investment. As a company wholly owned by the Republic of Serbia, Air Serbia distributes no dividends to private shareholders; payments to providers of capital are therefore limited to financing costs, and economic value retained is reinvested in the business.
Direct economic value generated
/
/
/
Revenue
EUR million
700.8
719.5
Economic value distributed
/
/
/
Operating costs (fuel, ground handling, MRO, leasing)
EUR million
551.6
570
Employee wages and benefits
EUR million
59.2
52.5
Payments to providers of capital (interest; dividends - none)
EUR million
1.6
2.3
Payments to government (taxes, fees, charges)
EUR million
18.5
11.1
Community investments (donations, sponsorships)
EUR million
0.04
0.04
Economic value retained (generated - distributed)
EUR million
41.5
35.6
Transition risks - carbon pricing and regulation Air Serbia is exposed to the cost of European and international carbon-pricing and offsetting schemes, principally the EU Emissions Trading System (EU ETS) and CORSIA (the Carbon Offsetting and Reduction Scheme for International Aviation). The company monitors and budgets for the cost of allowances and offsets under these schemes as part of its financial planning cycle. This cost is expected to rise over time as free allocations under EU ETS are progressively reduced and as CORSIA's scope of coverage expands, and Air Serbia factors this trajectory into its longer-term financial and fleet-planning decisions. Financial implications of climate change Climate change creates both financial risks and opportunities that are increasingly material to airline operations. Air Serbia considers these implications as an integral part of its financial planning, monitoring their direction and magnitude as part of its broader approach to financial resilience.
Sustainability Report 45
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