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
Transition risks - Sustainable Aviation Fuel (SAF) Under the EU ReFuelEU Aviation regulation, a minimum share of sustainable aviation fuel must be blended into fuel uplifted at EU airports, beginning at 2% in 2025 and rising progressively towards 70% by 2050. As SAF currently carries a significant price premium over conventional jet fuel, this obligation is a growing cost item for the company. Air Serbia incorporates this rising obligation into its fuel-procurement and financial planning, and continues to monitor the development of the SAF market, including price trends and supply availability, as this cost is expected to increase in line with the rising mandated blending share. Physical risks More frequent and severe extreme-weather events present operational and financial risks, including flight delays, cancellations, diversions and associated passenger-care costs. Air Serbia monitors the operational and financial exposure arising from weather-related disruption as part of its broader operational risk management, and takes this exposure into account in its network and contingency planning. Opportunities Fleet modernization and improved operational efficiency (Chapters 7.3 and 7.4) reduce fuel consumption per flight and per seat, lowering both fuel costs and exposure to carbon-pricing. Latest-generation aircraft such as the Airbus A220-300 illustrate this opportunity, and the company continues to prioritize efficiency gains of this kind as a core lever in its financial and fleet-planning decisions. Defined benefit plan obligations Air Serbia operates under the statutory state pension system in Serbia. The company does not maintain a defined benefit pension plan; pension obligations are settled through monthly contributions to the Republic Fund for Pension and Disability Insurance, in accordance with applicable law. As a result, the company carries no defined-benefit obligation requiring separate funding-level disclosure under this indicator.
Physical risks Air Serbia is wholly owned by the Republic of Serbia, which is the company’s sole shareholder. In the interest of transparency, the company discloses the financial assistance it receives from the State, distinguishing this clearly from its ordinary commercial operations. During the reporting period, government financial assistance comprised the items set out below.
Type of assistance
Unit
2024
2025
0
EUR million
0
Tax relief and tax credits
0
EUR million
0
Subsidies
0
EUR million
0
Investment incentives / grants
0
EUR million
0
Research and development grants
0
EUR million
0
Awards, royalty holidays and other benefits
0
EUR million
0
Financial assistance through State guarantees
5.6
EUR million
5.7
Public Service Obligation (PSO) subsidies - Niš / Kraljevo routes
5.6
EUR million
5.7
Total government financial assistance
Sustainability Report 46
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