Tarom ends H1 with 11 million-euro losses, five times more than expected

Tarom, Romania’s state-held air carrier ended the first six months of this year with 44.7 million RON (10.6 million euros) in losses, exceeding the sum provided for in the spending and revenue budget. “We targeted 990,000 passengers for the first half of this year, but we carried 765,000 passengers, amid a 50.3% load factor, 11.6% lower than targeted,” company representatives said. Tarom operated 477 fewer flights abroad compared with the first half of last year, a decline of 9.7%, according to the same source. Data of the Association of European Airlines (AEA), which uses another method of calculation, reveal that Tarom transported almost 704,000 passengers in the first six months of this year, down 14.2% against the similar time last year, amid a 49.9% aircraft load factor, 11.2% less than in the first half of last year. “The major factors behind this include the decline in the volume of foreign direct investments, and, as a result, a decline in transportation demand, with Romania being one of the most affected countries in the European Union.” Foreign direct investments fell by 42.9% in the first half of this year against the similar time last year, from 5 to 2.8 billion euros, according to representatives of the airline, who cite the National Bank of Romania (NBR) as a source.