Romania’s national airline company Tarom expects to break even and even report a profit next year, according to the updated restructuring plan sent to the European Commission and consulted by Profit.ro.

The last time the company reported a profit was in 2007. Since then, the company’s financial results have worsened significantly, particularly starting with the year 2015. It reported EUR 13 mln losses in 2015 and over EUR 35 mln in 2018-2019.

During the pandemic, however, the company’s losses surged to over EUR 80 mln in 2020 to decrease to just over EUR 60 mln in 2021.

Tarom’s restructuring plan has an estimated cost of up to RON1.84bn (EUR 380 mln), of which the company requested RON 923.6 mln as individual state aid for restructuring from the government.

As part of the restructuring, the company promised a 33% decrease in the total number of employees, including a 50% reduction in management positions, plus selling some aircraft.

andrei@romania-insider.com

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