Irish airline Ryanair has confirmed the suspension of all flights to and from Niš starting with the 2026 winter season due to regulatory issues related to aviation fuel. At the same time, there are reports of record operating results, but also a drastic decline in Wizz Air’s net profit.
These developments have raised questions about the future of low-cost air travel in Serbia, how the withdrawal of routes will affect the accessibility of destinations, and how global geopolitical developments are influencing the situation, as aviation expert Petar Vojinović told Euronews Serbia.
Two factors behind the crisis: Geopolitics and a specific business model
Explaining the background to the announced changes, Vojinović points out that the global crisis in the Middle East is currently intersecting with specific local circumstances related to the Oil Industry of Serbia (NIS). By their very nature, low-cost airlines depend on maximum cost optimization and are therefore extremely sensitive to unexpected increases in energy prices. “In their business model, low-cost airlines aim to keep costs as low as possible for the largest possible volume of operations – they try to optimize, save, shorten and speed up processes that ‘larger’ national airlines are unable to manage in the same way. This then translates into the marketing concept that the air ticket is very cheap. Of course, not all tickets on the plane are cheap, and you are also charged for bags at later stages of the booking process, but they are still cheaper. This year, they faced much higher-than-expected aviation fuel costs, and you cannot anticipate geopolitical disruptions of this kind,” the expert explains.
Despite the costs, Vojinović stresses that these airlines have been accumulating enormous cash reserves for years in order to withstand periods of crisis. Rather than spending money to fill temporary gaps, they strategically shift the markets they operate in.
He notes that Serbia represents an extremely small market for giants such as Wizz Air and Ryanair compared with other European countries, where demand has remained exceptionally strong, and that the absence of a broader recession in Europe is preventing an even deeper crisis in the sector.
The Niš case: Why Ryanair is leaving and how Air Serbia is responding
Speaking specifically about Niš, Vojinović points out that the paradox of the situation is that passenger demand is not declining at all: Niš Airport has recorded nearly 400,000 passengers, while aircraft load factors globally, as well as at Air Serbia, have exceeded the historic 80% mark. The problem with Ryanair is purely legal and corporate in nature and is related to aviation fuel suppliers. “Specifically regarding Ryanair, unlike the problem Wizz Air is facing in Belgrade, which is different in nature, the airline publicly stated that, because of the sanctions against NIS, or the prolonged process of resolving the NIS issue, it can no longer, at the corporate level, allow itself to refuel with NIS fuel in Niš. And, as it happens, NIS is the only producer of aviation fuel in Serbia. This is a corporate decision – they do not want to risk being hit by US sanctions. That is why they are withdrawing from Niš from October, when the winter season begins, which is normally the period when there are fewer flights,” he stressed.
Ryanair’s withdrawal has put routes such as Vienna, Malta and Copenhagen at risk. Vojinović explains how Niš Airport’s business model works: low-cost carriers receive substantial discounts on airport fees in exchange for high passenger traffic. As a result, the airport itself generates little revenue, while the local economy benefits through tourism and consumer spending.
However, shortly after Ryanair’s announcement, the national airline responded quickly on a commercial level. Air Serbia announced that it would take over and begin operating two key year-round routes from Niš – to Vienna and Malta.
This represents a purely commercial risk for the national carrier. Unlike some other flights from Niš that operate under state aid and EU agreements on subsidies, these two routes cannot benefit from such arrangements because Ryanair has already developed them and demonstrated that they are not loss-making.
Air Serbia is entering a market where it pays higher fees to Niš Airport, which will also affect the final ticket price. The national carrier will most likely not be able to offer fares below €90, but at that price passengers receive, depending on the fare, included baggage, free check-in at the airport counter and other benefits.
Source: Euronews, 11.08.2026