Romania's national flag carrier Tarom expects to end this year with losses, for the 15th consecutive year in the red. The gross loss budgeted for this year by the management and endorsed by the shareholders is RON 62.4 mln (EUR 12.5 mln), Economica,net reported.

The loss is expected to decrease by 71% compared to last year. Under the baseline scenario, Tarom expects to become profitable in 2024.

The company's revenues are estimated at over RON 2 bln in 2023, up by 33% compared to 2022. The cash flow should become positive starting this year.

The restructuring plan of Tarom, updated last December, has an estimated cost of up to RON 1.84 bln (EUR 380 mln), of which the company requested RON 924 mln (EUR 191 mln) as individual state restructuring aid from the government. In exchange, it promised to decrease the total number of employees by 33%, including a 50% reduction in management positions and to sell some of its aircraft. 

iulian@romania-insider.com

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