AS Sustainability Report

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

Key Supplier categories

Local sourcing and economic contribution

Largest category

Safety-critical

Working with suppliers based in Serbia supports local employment and economic activity and contributes to the resilience of the company’s day-to-day operations. It also forms part of the wider economic value Air Serbia generates and distributes nationally (see Section 7.1.1). In the reporting period, approximately 38.3% of the company’s active suppliers were based in Serbia.

A specialized, multi-layered chain of OEMs, parts producers and service vendors, supporting the continuing airworthiness of the fleet. MRO

Fuel supply

Jet fuel is the biggest procurement category and the main driver of the emissions profile. Air Serbia works with suppliers on supply security, quality and price.

Fuel supply

Jet fuel is Air Serbia's largest procurement category and a key driver of both its cost base and its environmental footprint. The company works with its fuel suppliers at the Belgrade hub and across its network on security of supply, quality and price, and manages its exposure to fuel-price volatility as part of its broader financial planning. Because fuel consumption translates directly into both cost and emissions, fuel efficiency is central to how Air Serbia manages this category. Fleet modernization and operational measures, such as fuel-efficient flight planning and single-engine taxiing , reduce consumption per flight, and are described more fully in Chapter 7. (Environment). Since 2024, Air Serbia has used SAF to the extent that market availability allows, and the company falls within the scope of the EU ReFuelEU Aviation regulation, which introduces a minimum SAF blending share at EU airports , starting at 2% in 2025 and rising progressively towards 70% by 2050. The company integrates these requirements into its fuel planning and monitors the development of the SAF market closely. At this stage, SAF uptake across the industry remains constrained, with limited global supply and a significant price premium over conventional jet fuel. Air Serbia takes a measured approach , using SAF where it is available and economically feasible, and meeting its regulatory obligations. The company's wider approach to fuel efficiency and emissions is described in Chapter 7 (Environment).

Focus:

approved-supplier rules, airworthiness and quality checks, parts traceability Focus:

ReFuelEU mandate rising 2% (2025) 70% (2050); availability limited, price premium high.

Safety-critical

Passenger-facing

A visible part of the passenger experience, with rising sustainability expectations across onboard materials and waste. In-flight catering

Ground handling

Handling, airport services and de-icing via airport-designated and contracted providers , central to punctuality (68% OTP in 2025).

Focus:

Focus:

reducing single-use plastics onboard (e.g. bamboo cutlery), lower-impact onboard products.

supporting on-time performance and ground safety.

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