Romanian airline Tarom accumulates another EUR 35 mln of losses in H1

Romanian state-owned airline Tarom reported a net turnover of RON 232 mln in the first half of 2021 (H1), slightly higher than the result recorded in the same period last year, according to data published by the company. The loss for the first semester was RON 176 mln (EUR 35 mln).

Tarom’s revenues edged up marginally by only 2.5% year-on-year in H1. Operating revenues increased by 13% to RON 269 mln.

Personnel expenses decreased by 15%, from RON 82.3 mln to RON 69.8 mln. At the end of June, the company had an actual number of 1,408 employees, compared to 1,746 employees on June 30, 2020.

The loss was 3.2% lower compared to last year: RON 176 mln.

The Romanian authorities are in talks with the European Commission for new state aid to compensate for the operating losses registered by Tarom in the period July-December 2020. Tarom received a temporary rescue loan of approximately EUR 36.7 mln from the Romanian state, after approval by the Commission, under EU state aid rules in February 2020.

On May 28, 2021, the Romanian authorities notified the Commission of a Tarom restructuring plan.

The European Commission announced in early July that it had launched an in-depth investigation to assess whether the support measures given by the Romanian authorities to Tarom complied with EU state aid rules for firms in difficulty.

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