The national air carrier Tarom estimates losses this year at 62.4 million lei and total revenues at 2 billion lei. According to the draft order of the Minister of Transport on approval of the most realistic scenario, 2024 will be the year of route profitability, and 2027 will be the pessimistic year. budget of revenues and expenditures of Tarom for 2023, made public at the discussion of the Ministry of Transport.

The last year the airline turned a profit was in 2007.

Tarom losses

“The draft budget of revenues and expenses for 2023 estimated a negative gross result – a loss in the amount of 62,415,950 lei, which is 28.79% less, respectively, in the amount of 154,348,660 lei compared to the gross result – a loss, approved in the budget revenues and expenses for the year 2022, by order of the Ministry of Internal Affairs and Communications No. 470/2022 and reducing by 20.53%, respectively, in the amount of 241,640,640 lei compared to the gross result – loss, previous/realized as of 12/31/2022”, the draft order shows, reports News .ro

Total revenues for this year were estimated at 2,008,454,090 lei, which is higher than the previous/realized year 2022 by 33.93%, corresponding to 508,835,630 lei.

Revenues from sales, planned for 2023, in the amount of 1,554,097,890 lei will be received from the provision of air transport services, maintenance, rental and other activities and constitute 77.38% of the total revenues in the amount of 2,008,454,090 lei.

In the category of revenues from sold products in the amount of 1,554,097,890 lei, revenues from passenger and cargo transportation on regular routes (including operations of blocked space agreements) in the amount of 1,340,458,830 lei were planned to increase by 43.67%, respectively, from the amount of 407,463,190 lei compared to the previous/realized year 2022. It was also planned to increase revenues from the transportation of charter passenger races by 14.08%, respectively, in the amount of 24,819,210 lei.

“In the restructuring plan, the future profitability of the commercial company Compania Nationala de Transporturi Aeriene Romanian – TAROM was analyzed under different scenarios reflecting potential changes in internal and market conditions, respectively under the “baseline scenario” – the standard scenario considered the most realistic, according to which 2024 2023 will be the year in which the routes become profitable, and 2023 will be the year in which cash flows become positive, and the “pessimistic scenario” is a scenario built starting from the base scenario, with some adjustments, according to which 2027 is this is the year when the routes will become profitable, and after 2029 cash flows will become positive,” the document says.

The indicators of the draft budget for 2023, subject to approval by the Board of Directors and approval by the General Meeting, are established in such a way as to support the proposed business objectives for the flight program and correlate with the business plan for 2020-2029 and specific prudential rules.

Costs by almost 15%

Total costs for 2023 were estimated at 2,070,870,040 lei, an increase of 14.81% compared to the previous/realized year 2022.

The total costs were estimated in the draft revenue and expenditure budget for the year 2023 based on the flight schedule contained in the Restructuring Plan for the years 2020-2029 related to the aircraft fleet envisaged for the company’s activities, taking into account the needs of the business and support activities, disposal of aircraft through sale, as well as receipt of aircraft acquired through financial and operational leasing.

In addition, the sources of investment financing provided for 2023 in the amount of 115,524,700 lei are estimated to increase by 4,322.45%, respectively, in the amount of 112,852,030 lei compared to the previous/realized in 2022 and consist of:

• own sources in the amount of 32,930,050 lei;
• investment loans in the amount of 82,594,650 lei.

How much does a Tarom employee earn on average?

The projected number of employees at the end of 2023 of 1,314 employees decreased by 4 employees compared to the one approved in the 2022 revenue and expenditure budget by MTS order No. 470/2022.

The average monthly earnings per employee (lei/person), determined on the basis of wage costs calculated in accordance with the Law on the Annual State Budget for 2023 – Law No. 368/2022, in the amount of 10,592.85 lei/employee, was estimated having increased by 18.03 compared to the previous one/achieved in 2022.

At the time of drawing up the income and expenditure budget for 2023, the Tarom company registers outstanding payments to the state budget in the amount of 102,986,180 lei.

By the end of 2023, the company aims to redistribute these amounts after the approval of the restructuring aid. Outstanding payments in the amount of 507,648,640 lei were estimated in the draft budget of revenues and expenses for the year 2023, increasing by 81.71% compared to those approved in the budget of revenues and expenses for the year 2022 by Order of the Ministry of Internal Affairs and Communications 470/2022 and consist of:

• 102,986,180 lei to the state budget;
• 404,662,470 lei to internal and external suppliers.

Outstanding receivables in the amount of 11,721,840 lei were to decrease by 35.06% compared to the previous/realized debt on 12/31/2022. (Source: News.ro)