Romanian state-owned airline Tarom reports higher loss in 2010

Romania’s state-owned airline Tarom recorded total revenues of EUR 305 million for 2010, up 15 percent compared to 2009, while the company's net turnover was EUR 218 million, up 13 percent from 2009. The company posted a loss of EUR 78.9 million in 2010, higher than the EUR 55 million loss in 2009. Tarom has transported 2.19 million passangers in 2010, up 23.6 percent compared with 2009, of which 1.4 million on regular external flights, 0.5 million passengers on regular internal flights and 148,000 passengers for charter flights. The company has been impacted by the eruption of the volcano in Iceland last year, which caused it losses of EUR 4.87 million, according to the company. The volatility of the exchange rate has also affected the airline, as well as the general economic climate, which has impacted airlines all over Europe, according to Tarom. The company recorded zero debts to the state budget on December 31, 2010, and the long-term commitments on foreign loans fell by 42 percent in RON compared to 2009. Tarom aims to apply drastic measures to reduce costs and increase revenues this year. Globally, according to the report recently submitted by IATA in the Annual Summit of the International Air Transport, the profitability of the aviation market is estimated at USD 8.9 billion in 2010, the only exception being Europe, which reported losses of USD 1.3 billion. Irina Popescu, irina.popescu@romania-insider.com