Bucharest, August 19th 2016/ The financial situation of TAROM for the first semester
According to the financial situation of Tarom done for the first six months, the company ended the first semester with a loss of 28.6 mil. RON, while the budget of revenue and expenditure provided, for the same period, a loss of 3.4 mil. RON.
The loss of 49.9 mil RON registered by the end of the first quarter was reduced to half during the second quarter, so that at the end of the first semester the total loss is of 28.6 mil. RON. It must be said that, within the field of aviation, the first quarter of the year is the weakest and that, during this period, the airlines register the lowest incomes.
Unforeseen losses were generated especially by technical problems that led to the cancelation or delay of certain flights, thus determining the payment of certain unplanned penalties and the reduction of incomes, fact which had a significant impact over the final figures. The poor performance of the former executive management during January and March 2016 had also a negative impact over the financial results. As a matter of fact, this was also one of the reasons why, in March, the Management Board decided to make changes in the management team.
Currently, Tarom’s new management team and Management Board have initiated the necessary procedures for modernizing the fleet, streamlining the operations, improving the services, opening new routes and shaping a new marketing strategy to attract more passengers.
It is well known that in aviation, the second half of the year is the most profitable, covering the peak season during summer and the month of December. With this in mind and the above measures covered by Tarom’s administration, we are confident that at the end of 2016, the level of loss will not exceed the amount provided in the budget approved by the Government, namely 6.9 mil. RON.
TAROM National Company of Romanian Air Transport was founded in 1954 and developed together with the Romanian aviation. TAROM operates under the authority of the Ministry of Transportation. Since June 2010 is member of SkyTeam Alliance, since 1993 a member of the International Air Transport Association (IATA) and since 2000 a member of the Association of European Airlines (AEA).