In the first six months of this year, Croatia Airlines reported a net loss of 9.5 million euros, while in the second quarter alone, it achieved a net profit of 420 thousand euros, the company announced.
The announcement highlights that according to the plans of the Croatian national carrier and the current situation in the global air transport industry, characterized by low profitability, the net loss during the low-demand period in the first quarter of 2024 amounted to 9.92 million euros, while the net loss for the January – June 2024 period was 9.5 million euros. In the second quarter of 2024, a net profit of 420 thousand euros was achieved.
It is stated that this was conditioned by the transitional period of the start of the fleet replacement, characterized by increased cost exposure of all, especially operational business processes. Specifically, to carry out the planned flight schedule, Croatia Airlines had to short-term lease aircraft, resulting in increased maintenance costs and short-term leases, compared to the same period last year, which amounted to 10.4 million euros.
Thanks to this, it is emphasized, slots at airports were preserved, while the investment in new routes will be positively valued when a larger number of A220 fleet aircraft start operating, specifically planned for 2025.
Total business revenues are three percent higher compared to the first half of 2023. The largest share (87 percent) of total business revenues relates to passenger transport revenues, which are seven percent higher, with a five percent increase in the number of passengers in the observed period.
Operating costs incurred are 14 percent higher compared to the costs incurred in the first half of 2023, and the main impact on their growth (67 percent of the nominal increase in total costs) are short-term aircraft lease costs incurred due to the need to bridge the maintenance period of the Airbus fleet, as well as higher aircraft maintenance costs.
Additional impacts on cost growth were inflationary trends, a two percent increase in flight hours, and a five percent increase in the number of passengers.
The increase in Croatia Airlines employee salaries also impacted cost increases compared to the first half of 2023, with a gross salary increase of 10 percent implemented from April 1, 2023, which includes a significant increase in the lowest salaries in the company to mitigate the negative impact of inflation.
In the first half of 2024, Croatia Airlines flew to 28 international and eight domestic destinations. It transported 814,553 passengers, which is five percent more compared to the same period in 2023. Passenger kilometers flown increased by six percent, with an average passenger cabin occupancy of 62.2 percent. The number of passengers in domestic regular traffic is seven percent higher, and in international regular traffic, six percent higher compared to the first half of 2023.
In the first half of 2024, intensive activities related to the reception of the first two new Airbus A220 aircraft into the fleet continued, according to Croatia Airlines’ Post Covid strategy. The first Airbus A220 aircraft joined the fleet yesterday, while the second is expected in December.