Tarom narrows loss by 24 percent in 2011

Romanian airline Tarom has failed to reach breakeven in 2011 and has reported RON 252.18 million loss (approximately EUR 58 million), according to Mediafax newswire. Although the loss was down 24.16 percent y-o-y, it continues to be higher than the RON 234.7 million level reported in 2009. According to the company’s budget project for 2011, Tarom had hoped to reach breakeven last year.

In its budget project for 2012, the company estimates to reduce losses to RON 187.24 million (EUR 43.4 million) this year and further on to RON 122.29 million (EUR 28.4 million) in 2013 and RON 60.58 million (EUR 14 million) in 2014.

This year’s income is projected to rise by 13.7 percent from the preliminary RON 1.24 billion (EUR 279 million) last year to RON 1.41 billion (EUR 327 million), and expenses by 6.6 percent from RON 1.5 million (EUR 348,000) to RON 1.6 million (EUR 370,000).

Tarom reported 2.1 million passengers in 2010 and has previously announced that it hopes to see their number reach 2.4 million in 2011.

State-owned Tarom started reporting loss in 2008 (RON 6.31 million).  In 2007 the company registered a RON 72.68 profit, up 67 percent against 2006. The company is monitored under the IMF agreement and should get private management this year.

Read more about

Romanian Olympic Team departs for Paris aboard specially named aircraft “Nadia Comăneci”

read more

Simona Bazavan