Tarom reports H1 losses of RON 28.6 million

Tarom, Romania’s flagship carrier, has posted losses of RON 28.6 million, eight times higher than the amount budgeted for the period in question of RON 3.4 million. The loss was caused by technical problems that led to flight cancellations and delays.

According to Tarom, at the end of the first quarter, the company posted losses of RON 49.9 million. During the second quarter, the losses were reduced, so that at the end of the first half the total losses amounted to RON 28.6 million. The company also noted that, as a rule, the first quarter of the year is generally the weakest in terms of revenues. Moreover, the technical issues affecting Tarom which caused flight cancellations and delays had a significant impact on the final numbers, as penalties had to be paid.

“Currently, the new Tarom management and the Board of Directors have started the procedures needed to modernize the fleet, streamline operations, open new flight routes and the drafting of a new marketing strategy to attract more passengers.”

According to Tarom representatives, the second half is generally the best, as it covers the summer months and the month of December. That is why, company representatives are confident that, by year-end, the total losses will not exceed the amount budgeted of RON 6.9 million.

Last year, the airline carried around 2.4 million passengers and recorded a net turnover of RON 1.1 billion and net losses of RON 27 million. The company forecasts a turnover of RON 1.52 billion for 2016, up by 8.9 percent.

In August, Tarom appointed Dan Iulius Plaveti as interim CEO, replacing Gabriel Stoe, who took over from Christian Heinzmann, after the Belgian was sacked.

Georgeta Gheorghe