Commercial Aviation
Air Serbia Expands Fleet and Routes to Strengthen Regional Hub by 2026
Air Serbia plans fleet growth and new routes through 2026, boosting transfer traffic and posting record profits without state subsidies.
Air Serbia’s Strategic Fleet Expansion and Route Enhancement Initiative: A Comprehensive Analysis of Growth Plans Through 2026
Air Serbia’s latest fleet expansion and route upgrade plan marks a significant chapter in the carrier’s evolution. As Serbia’s national airline, Air Serbia has steadily transitioned from a regional operator to a growing European player, leveraging a blend of fleet modernization, network expansion, and operational efficiency. The current strategy, which includes the addition of five new aircraft and selective route enhancements, is designed to meet rising passenger demand, improve profitability, and position Belgrade as a key aviation hub in southeastern Europe.
This expansion comes at a time of strong financial performance and signals Air Serbia’s readiness to compete more robustly in the regional and international markets. The carrier’s focus on sustainable growth, supported by a clear five-year strategic plan, demonstrates a commitment to long-term success without reliance on direct state subsidies. By modernizing its fleet and optimizing its route network, Air Serbia aims to surpass previous passenger records and strengthen its role as a transfer hub for the Balkans.
The following analysis explores the historical context, details of the fleet and route strategy, financial performance, and the broader implications of Air Serbia’s current growth trajectory, drawing on public data and expert commentary.
Historical Context and Strategic Pivot
Air Serbia’s transformation began in earnest with its 2013 rebranding, an effort that followed years of financial challenges and legacy debt inherited from its predecessor, JAT Yugoslav Airlines. The partnership with Etihad Airways in 2013 provided the capital and management expertise needed to overhaul operations and set the airline on a path toward commercial sustainability.[18]
A notable milestone was reached in 2023 when Air Serbia ceased to rely on direct state subsidies, a shift underscored by the Serbian government’s clarification that previous support was used to resolve JAT’s legacy debts, not to fund daily operations.[18] This move towards financial independence has been accompanied by a renewed focus on profitability, as highlighted by CEO Jiri Marek, who emphasized the airline’s commitment to operating as a commercial entity even under state ownership.
In terms of passenger performance, Air Serbia has made significant strides. In 2024, the airline carried 4.44 million passengers, edging closer to the 1987 record of 4.53 million set by JAT Yugoslav Airlines.[13][1] This achievement is both symbolic and practical, reflecting the airline’s resurgence as a major player in the region.
Fleet Modernization and Expansion
Air Serbia’s fleet strategy is characterized by diversification and modernization. As of April 2025, the fleet includes 29 aircraft: four Airbus A330-200s for long-haul routes, three A320-200s, ten A319-100s, two Embraer E-195s, and ten ATR 72-600s for regional operations.[2][7] This mix allows the airline to tailor capacity to route demand and optimize operational efficiency.
The recent addition of the Embraer E-195 (YU-ATC), a 118-seat aircraft, exemplifies the carrier’s approach to right-sizing capacity on medium-density European routes.[2][7] CEO Jiri Marek noted that since 2022, the fleet has grown by 18 aircraft, a move aimed at improving reliability and reducing maintenance costs associated with older planes.[2]
Air Serbia’s plan to expand to 32 aircraft by 2026 represents a 37% increase from its 2019 baseline.[4][14] The expansion is supported by improved aircraft leasing conditions, with additional Embraer jets and an Airbus A320 expected by the end of 2025.[8][16] Wet-leasing arrangements, such as those with GetJet Airlines and Bulgaria Air, provide the flexibility needed during peak seasons and maintenance periods.[16]
“Since the beginning of 2022, our fleet has been strengthened with 18 new aircraft, marking a significant step towards improving operational efficiency and capacity.” — Jiri Marek, CEO, Air Serbia[2]
Route Network Development
Air Serbia’s network development strategy is built on three pillars: leisure routes, hub feeders, and diaspora/business markets.[12] For summer 2025, the airline is launching new services to Florence, Alghero, Mykonos, and Tbilisi, targeting both holidaymakers and transfer passengers.[1][6][12] These destinations complement the carrier’s Mediterranean focus and support its hub-and-spoke model.
The airline’s five-year plan includes a ready list of potential new destinations, allowing rapid adjustments in response to market changes.[12] Air Serbia’s strategy also targets regional markets in Bulgaria, Romania, Hungary, and Slovakia, aiming to build feeder traffic for its long-haul network.
Despite strong point-to-point demand to unserved markets like Dublin and Manchester, Air Serbia’s analysis suggests that these routes are best supported by transfer traffic rather than direct demand.[12][17] This reinforces the airline’s focus on developing Belgrade as a transfer hub, connecting underserved regional cities to global destinations.
“We have a clearly defined list of destinations that can be launched as soon as conditions allow, whether in terms of available capacity or favourable market circumstances.” — Jiri Marek, CEO, Air Serbia[12]
Financial Performance and Market Position
Air Serbia’s financial turnaround is notable. The airline reported a preliminary net profit of EUR 41.3 million in 2024, with total revenue surpassing EUR 700.3 million, both company records.[9][10] This performance was achieved despite significant investments in fleet renewal and expansion, underscoring the effectiveness of the airline’s commercial strategy.
Revenue growth of 11.5% in 2024 outpaced the 6% increase in passenger numbers, indicating improved yield management and pricing strategies.[9][11] Operational efficiency gains were also evident, with 4.44 million passengers carried on 47,022 flights and cargo volumes rising by 25.14% to 7,144 tons, the highest since 2013.[13]
The airline’s market share at Belgrade Airport increased from 43% in 2018 to 52% in 2025, reflecting both organic growth and successful competitive positioning.[14] Air Serbia now holds the largest market share among former Yugoslav carriers and ranks fifth among Central European airlines, though it is still 51st in Europe overall.[14]
“Fleet renewal and expansion, as well as the introduction of a new aircraft type, entail significant costs and major investments, yet we still achieved improved financial results.” — Jiri Marek, CEO, Air Serbia[9]
Transfer Traffic and Hub Development
A key driver of Air Serbia’s growth has been its shift toward transfer traffic. The proportion of transfer passengers rose from 20% in 2019 to 40% in 2024, reflecting the airline’s success in developing Belgrade Nikola Tesla Airport as a regional hub.[17]
The hub model is supported by airport infrastructure that enables quick transfers, walking times between gates are under 15 minutes with no additional security or passport checks for connecting passengers.[17] This efficiency, along with optimized network schedules, positions Belgrade as a competitive alternative to larger European hubs for certain traffic flows.
The transfer strategy is particularly important for routes with limited point-to-point demand, enabling Air Serbia to serve destinations that might not be viable for low-cost or point-to-point carriers.[17]
Long-Haul Network and Partnerships
Air Serbia’s long-haul network includes four Airbus A330-200s serving New York, Chicago, Guangzhou, and Shanghai.[14] The addition of Shanghai in January 2025 and the codeshare agreement with China Southern Airlines have strengthened the airline’s position in the Asian market.[14]
The carrier’s approach to long-haul expansion is cautious and profitability-focused. Future destinations under consideration include Miami, Toronto, Tokyo, and Seoul, though the immediate priority is increasing frequencies on existing routes.[12][14]
Strategic partnerships, including codeshares and interline agreements, are central to expanding network reach without overextending resources. Air Serbia’s openness to further alliance integration and regional cooperation reflects a pragmatic approach to growth.[3][14]
Operational Efficiency and Service Enhancement
Air Serbia’s operational improvements extend to both ground and in-flight services. The opening of a new Premium check-in facility at Belgrade Airport, featuring dedicated counters and customer assistance, enhances the passenger experience for business and premium travelers.[19]
The planned development of an in-house maintenance, repair, and overhaul (MRO) facility by 2026 will enable the airline to manage fleet upkeep more efficiently and reduce reliance on external providers.[4] This investment is expected to improve aircraft turnaround times and support further fleet expansion.
Cabin modernization, such as the installation of Recaro 3520DE seats, and the launch of a cadet pilot program in partnership with the Aviation Academy, demonstrate Air Serbia’s commitment to both customer comfort and workforce development.[5][13] Social responsibility initiatives, including uniform donations and environmental projects, further enhance the airline’s public image.[6]
Market Challenges and Future Outlook
While Air Serbia’s recent growth has been impressive, challenges remain. Aircraft maintenance requirements, especially for older models, necessitate careful planning and backup capacity.[16] The airline’s reliance on wet-leasing during peak periods is a pragmatic response to current market conditions, but long-term fleet renewal decisions are unlikely before 2027 due to manufacturer lead times.[8]
The competitive landscape is evolving, with low-cost carrier penetration fluctuating and regional consolidation opportunities on the horizon.[14] Air Serbia’s hybrid model, combining cost efficiency with select premium services, positions it well to compete across multiple market segments.
Looking ahead, Air Serbia’s focus on sustainable growth, operational flexibility, and strategic partnerships will be critical as it seeks to surpass historical records and establish itself as a leading European carrier.
“Our focus now is on the main driver of growth in the coming period, which will be transfer traffic.” — Jiri Marek, CEO, Air Serbia[17]
Conclusion
Air Serbia’s current expansion strategy is a testament to its transformation from a state-supported entity to a commercially viable airline. The combination of fleet modernization, network optimization, and service enhancements has resulted in record financial and operational performance. The planned addition of five new aircraft and selective route upgrades through 2026 are set to further consolidate the airline’s position in the region and beyond.
As Air Serbia continues to implement its strategic vision, the focus on transfer traffic, operational efficiency, and customer experience will remain central. The airline’s ability to adapt to changing market conditions, invest in infrastructure, and forge strategic partnerships will determine its success in achieving sustainable, long-term growth in the competitive European aviation sector.
FAQ
Q: How many aircraft will Air Serbia add as part of its current expansion plan?
A: Air Serbia plans to add five new aircraft to its fleet by 2026, bringing the total from 29 to 32 aircraft.[2][4]
Q: What are the main new routes Air Serbia is launching in 2025?
A: The airline is launching new routes to Florence, Alghero, Mykonos, and Tbilisi, among others.[1][6]
Q: Is Air Serbia still receiving direct state subsidies?
A: No, Air Serbia ceased receiving direct state subsidies in 2023, marking a shift to commercial independence.[18]
Q: What is Air Serbia’s main growth strategy?
A: The main growth driver is transfer traffic, with a focus on developing Belgrade as a regional hub connecting Europe, Asia, and North America.[17]
Q: How has Air Serbia’s financial performance changed recently?
A: The airline reported record net profits and revenues in 2024, with over EUR 700 million in revenue and EUR 41.3 million in profit.[9][10]
Sources:
EX-YU Aviation News
Photo Credit: Air Serbia
Commercial Aviation
Central China Longhao Airlines Launches UK Freighter Route
Central China Longhao Airlines begins twice-weekly Boeing 747-400 freighter service between Zhengzhou and East Midlands Airport.
Central China Longhao Airlines has launched a new twice-weekly Boeing 747-400 freighter service connecting Zhengzhou Xinzheng International Airport (CGO) with the UK’s East Midlands Airport (EMA), marking the Chinese state-owned carrier’s first gateway into the United Kingdom.
The inaugural flight touched down on November 2, 2026, according to a press release issued by East Midlands Airport on November 3. The new route expands the UK hub’s international cargo aircraft network and provides Air Central, as the airline is also known, with a strategic foothold to capitalize on the rapidly evolving Chinese air cargo market.
Expanding UK-China freight capacity
The introduction of the Zhengzhou to East Midlands route adds dedicated main-deck capacity between central China and the UK. Operating twice a week, the service utilizes Boeing 747-400 freighter aircraft.
East Midlands Airport Commercial Director Adam Andrews noted the significance of the new operator. “We’re really pleased to welcome Central China Longhao as a new airline operating to East Midlands as its gateway into the UK,” Andrews said in the airport’s announcement. He added that the carrier’s decision to launch operations at the hub provides evidence of the airport’s growing reputation within the Chinese air cargo sector.
East Midlands Airport’s cargo growth trajectory
The arrival of Central China Longhao Airlines aligns with a period of sustained cargo growth at East Midlands Airport. In September 2026, the airport recorded a 6.3 percent year-on-year increase in cargo volumes, handling an additional 36,000 tonnes compared to September 2025.
To support this ongoing expansion and manage long-term growth plans, the Manchester Airports Group (MAG) subsidiary is currently recruiting a new Head of Cargo Development. The airport leverages its central UK location and unrestricted 24/7 operational capability to attract international freight operators.
“We are continuing to attract more cargo operators, who understand that our great central location and available capacity helped by a 24/7 operation together make us an unbeatable proposition in the UK,” Andrews stated.
The Zhengzhou cargo hub connection
Central China Longhao Airlines, restructured and established by the Henan Civil Aviation Development & Investment Group in 2019, operates as a state-owned cargo airline based in Henan Province. The carrier plays a central role in developing the Zhengzhou international air cargo hub, operating a fleet that serves destinations throughout Asia-Pacific and Europe.
Zhengzhou Xinzheng International Airport serves as one of China’s primary cargo gateways and the busiest aviation hub in central China. In 2025, the facility handled approximately 1.03 million tonnes of cargo. The new direct link to East Midlands Airport facilitates increased trade flow between this Chinese manufacturing and logistics center and the UK market.
Photo Credit: Central China Longhao Airlines
Route Development
TAV Airports Commits 315 Million Euros to Almaty Airport Expansion
TAV Airports signs a 315M euro deal with Kazakhstan for Almaty Airport phase two, bringing total investment to 572M euros.
TAV Airports and the Government of Kazakhstan signed a memorandum of cooperation on May 20, 2026, committing €315 million ($353.9 million) to the second-phase expansion of Almaty International Airport (ALA).
The agreement, announced in a company press release, brings the Turkish airport operator’s total completed and ongoing investments at the Central Asian aviation hub to €572 million ($642.5 million). The funding targets airside enhancements and operational upgrades scheduled for completion in 2027, supporting surging passenger traffic along the Middle Corridor route.
Expanding Central Asia’s busiest gateway
The second-phase investment program covers the 2025 to 2027 period and focuses on airside infrastructure and operational efficiency. Almaty International Airport serves as the primary hub for Kazakhstan flag carrier Air Astana and its low-cost subsidiary FlyArystan. As of late 2025, the facility handled 42 airlines connecting to 86 destinations across 30 countries.
Passenger volumes at the facility have grown rapidly. According to TAV Airports, the hub processed 11.9 million passengers in 2025. Recent data highlighted by TAV Airports CEO Serkan Kaptan during the Organization of Turkic States summit in November 2026 showed the airport handled 9.47 million passengers in the first nine months of 2026, driven by an 11 percent increase in international traffic.
Kaptan noted the strategic importance of the location for both regional connectivity and international freight.
“Almaty continues to grow both in passenger traffic and cargo as one of the key stops on the modern Silk Road extending from Asia-Pacific to Europe and Africa, and on the Middle Corridor, which is also of great importance for our country,” Kaptan said.
Turkish Airlines currently operates approximately 50 weekly flights to Almaty, including dedicated cargo aircraft services, while Pegasus Airlines maintains direct routes between Almaty and Turkish destinations including Istanbul and Antalya.
TAV’s transition from manager to owner
The Almaty expansion represents a distinct operational model for TAV Airports Holding, a member of Groupe ADP. When TAV acquired an 85 percent stake in the airport in April 2021, with the remaining 15 percent held by the Kazakhstan Infrastructure Fund, it marked the first facility in the company’s portfolio that it owns and operates outright rather than managing under a time-limited concession.
The operator inherited a facility serving approximately 6 million passengers annually. The first phase of TAV’s investment program, valued at €257 million ($288.7 million), concluded on June 1, 2024, with the opening of Terminal 2. The new international terminal and accompanying VIP facilities doubled the airport’s annual passenger capacity to over 14 million.
TAV Airports currently operates 15 airports across eight countries, providing integrated services including ground handling, security, and duty-free operations. The company reported serving 113 million passengers across its global portfolio in 2025.
AirPro News analysis
We view TAV’s deepening financial commitment in Kazakhstan as a direct response to shifting global airspace dynamics. With Russian airspace remaining restricted for many international carriers, the Middle Corridor connecting Asia and Europe through Central Asia has gained structural importance. Almaty’s geographic position allows it to capture both increased technical stops for cargo operators and rising point-to-point demand, justifying capital expenditures that exceed half a billion euros over a six-year period.
Photo Credit: TAV Airports
Commercial Aviation
Finnair Selects SES for Multi-Orbit IFC on E195-E2 Fleet
Finnair picks SES to deliver multi-orbit in-flight connectivity on 18 Embraer E195-E2 jets, with deliveries from Q3 2027.
Finnair (AY) has selected Luxembourg-based satellite operator SES to provide multi-orbit in-flight connectivity (IFC) for its incoming fleet of 18 Embraer E195-E2 regional jets, aiming to replicate ground-based internet speeds for passengers.
Announced in a press release on November 2, 2026, the agreement highlights a broader aviation industry transition toward hybrid satellite networks that combine Geostationary (GEO) and Low Earth Orbit (LEO) capacity. The electronically steered array antennas (ESA) will be line-fitted directly at Embraer’s manufacturing facilities before the aircraft enter service on Finnair’s European and domestic routes.
Integrating multi-orbit satellite networks
The inflight connectivity market is increasingly shifting toward multi-orbit solutions. These systems combine the high bandwidth capacity of traditional GEO satellites, which are effective for managing dense traffic over busy aviation hubs, with the low latency provided by LEO networks, which orbit closer to Earth and enable real-time applications.
For this deployment, SES is partnering with Eutelsat Group, which acquired the OneWeb LEO constellation, to deliver the low-latency component of the service. The hardware enabling this hybrid connection is the SES electronically steered array antenna. By opting for line-fit installation at the Embraer factory, Finnair ensures the aircraft arrive ready for connected service, bypassing the need for aftermarket modifications.
Simon Large, Chief Customer Officer at Finnair, stated that customer needs drive the airline’s decisions and that connectivity is an increasingly important part of the overall travel experience.
“We are excited to partner with SES to bring a home-like broadband experience to our customers,” Large said.
Blane Boynton, Senior Vice President Aviation at SES, noted that inflight Wi-Fi has become a core part of the travel experience.
“SES’s multi-orbit network delivers the reliability, performance and flexibility airlines need today while providing a clear path for future growth. This agreement is another testament to the growing confidence leading airlines are placing in our solution,” Boynton said.
Thierry Polycarpe, Vice President for Aviation and Maritime at Eutelsat, added that the high-speed, low-latency network supports real-time applications and complements GEO coverage to deliver a resilient connection.
Finnair’s narrowbody fleet renewal program
The connectivity agreement follows Finnair’s March 23, 2026, announcement of a comprehensive narrowbody fleet renewal program. The cornerstone of this initiative is a firm order for 18 Embraer E195-E2 aircraft, supplemented by 16 options and 12 purchase rights.
These aircraft will be operated by Finnair’s partner, Nordic Regional Airlines (Norra). They are slated to serve regional traffic to and from Finland, acting as a critical feeder network for Finnair’s long-haul operations out of Helsinki Airport (HEL).
Finnair has specified a 134-seat configuration for the E195-E2 fleet. Deliveries are scheduled to commence in the third quarter of 2027. According to Finnair’s initial fleet renewal announcement, the airline expects to receive three aircraft in 2027, six in 2028, and six in 2029. The delivery timeline for the remaining three firm orders has not been explicitly detailed by the airline.
The carrier has been actively preparing for the introduction of the new type. In its third-quarter 2026 interim report, released on October 27, 2026, Finnair confirmed that preparations are underway to take delivery of the first E195-E2 next year. This follows a strong second quarter in which the airline reported a 16.4 percent increase in revenue, reaching 916.7 million euros.
AirPro News analysis
We view Finnair’s decision to line-fit the SES electronically steered array antenna directly at the Embraer factory as a significant operational advantage. Factory installation eliminates the need for post-delivery modifications, reducing aircraft downtime and accelerating the entry into revenue service. Furthermore, the selection of a multi-orbit solution underscores a growing consensus among European operators that legacy GEO-only networks are no longer sufficient to meet passenger expectations for streaming and low-latency applications. By leveraging Eutelsat’s OneWeb LEO constellation alongside SES’s established GEO assets, Finnair is effectively future-proofing the passenger experience on its regional feeder network.
Photo Credit: SES
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