The tenth year in a row of negative results for TAROM. Losses of RON 41.2 M in 2017

Romania’s flagship carrier TAROM estimates losses of RON 41.2 million this year, down 12.3 percent year-on-year, to total revenues of RON 1.32 billion, according to the draft budget debated by the Ministry of Transport, the majority shareholder.

The company’s budget shows that 2017 would be the 10th year of loss for TAROM, as the company has not recorded any profit since 2007.

On end-May, Transport Minister Razvan Cuc said that TAROM air carrier will end this year without any losses.

“TAROM is relaunching from the economic perspective. The economic forecast for TAROM is to close the financial year with no loss,” Cuc said that moment.

Last year, TAROM reported losses of RON 46.97 million (EUR 11.1 million), amid falling revenues and the value of fixed assets. For this year, the company expects revenues of RON 1.32 billion, up 6.4 percent from last year’s level of RON 1.24 billion, and expenses of RON 1.36 billion, out of which RON 220.9 million are for employees’ salaries.

For this year, the company has also planned an expenditure budget of RON 267.8 million (EUR 59 million) for investments. At the same time, TAROM expects to reach 2.067 employees at the end of this year, compared with 1,841 employees at the end-2016.

The average monthly wage of the employees in TAROM is RON 5,827 – or EUR 1,280 – this year, according to the draft budget.

draft budgetlossesMinistry of TransportRomania’s flagship carrierTaromtransport minister Razvan Cuc
Comments (0)
Add Comment