Development since the 2000s
In 2003, the country was renamed Serbia and Montenegro, and that same year the company was renamed Jat Airways. In 2006, Montenegro declared independence and Jat Airways became the flag carrier of Serbia. An aging fleet and lack of investment made the airline unprofitable, so the Serbian government sought a strategic partner for the company.[15]
On 1 August 2013, Jat Airways and Etihad Airways entered into a strategic partnership agreement under which Etihad would acquire a 49% interest in Jat Airways and its management rights for five years.[16] The Republic of Serbia would retain a controlling interest of 51% and hold five of nine monitoring committee seats in the company.[17] Jat Airways was then reorganized and renamed Air Serbia in October 2013. It launched its inaugural flight from Belgrade to Abu Dhabi[9] on 26 October 2013.
On 23 June 2016, Air Serbia's non-stop flights between Belgrade and New York commenced using an Airbus A330-200 leased from Etihad partner Jet Airways. This transatlantic service became the first non-stop flight operated by a former Yugoslav carrier into the United States since 1992, when all of JAT's long-haul flights were suspended.[18]
Air Serbia implemented an extensive restructuring plan in mid 2017 to improve its performance. The goal was to focus on net profit, a new fare structure, new sales channels, and offer additional services that would increase efficiency.[19] From May to June 2017, it retrofitted its Airbus A319 and A320 fleet with Recaro BL3520 seats to standardize its seating plan. This resulted in a seating capacity increase of 12%.[20] On 24 January 2018, the carrier announced the introduction of a new pricing model that would create four fare types in an effort to unbundle its fares. Passengers can choose from four fare types, with each fare type determining luggage allowance, priority boarding, fast track through the airport, travel date changes, and other entitlements.[19]
On 1 March 2018, Air Serbia opened the Elevate Deli & Bar service on its short and medium-haul flights to give passengers the option to purchase food and drinks on the flight. This service replaced its previous inflight catering and offers one of two menus based on flight length and type of aircraft operating the route. Inflight catering on its long-haul, transatlantic service remains unchanged, with passengers receiving a free meal.[21]
In 2021, the company was awarded the Order of Karađorđe's Star.[22]
Since Serbia did not impose sanctions on Russia following the 2022 Russian invasion of Ukraine, the airline continues to operate regular flights to the country, creating a loophole for Russian citizens to fly to Europe.[23] As a result, the airline has faced dozens of bomb threats which airline officials have attributed to foreign intelligence agencies seeking to disrupt its flights to Russia. In April 2022, it was reported that a NATO military aircraft had trailed an Air Serbia flight as it left Russian airspace.[24]
On 11 January 2025, Air Serbia flight JU986 successfully touched down at Shanghai Pudong International Airport. The plane was welcomed by a water salute ceremony, marking the first direct flight between Shanghai and Belgrade, the capital city of Serbia.[25]