Croatia Airlines’ 2022 loss exceeds € 21 million

Croatia Airlines has recorded a net loss of 21.8 million euros for the first half of the year, up 11% on the same period in 2021. This has resulted in the company’s capital and reserves being diminished by over three times compared to levels at the end of last year. However, in June, the carrier recorded its first positive financial monthly result since the global outbreak of the coronavirus pandemic in March 2020. Over the January – June period, revenue increased 93% on last year but is still down 23% on the pre- pandemic 2019. Costs also grew by over 70%, due in part to rising fuel prices and inflation. “Significant positive developments were achieved compared to the first half of 2021, however, it should be noted that the increase in the price of fuel significantly impacted the cost of operations. The unpredictability of the pandemic and its continuation this coming autumn and winter may have a notable impact on demand, and, consequently, income “, the airline said.

Croatia Airlines has seen some positive developments over the past six months with ticket sales up three and a half times on the same period in 2021. Existing booking over the next six months, from August 2022 until January 2023, are 1.7 times higher than last year but are still down 34% on 2019. The ongoing war in Ukraine has not had a major direct impact on the company’s sales. The airline has lost some transfer passengers on its domestic flights that were fed by Aeroflot’s Moscow – Zagreb service, however, this number amounted to just 1.000 travelers in the pre-pandemic 2019. Croatia Airlines used to run seasonal flights between Zagreb and St Petersburg before the global health emergency, but these have not been in operation since 2019. That year, the company sold a total of 5,500 tickets on the Russian market. It had no sales agents in Ukraine.

During the first half of the year, Croatia Airlines handled 558.146 passengers, up 189% on last year but still at just 58.1% of pre-Covid levels. Of those, 146,428 travelers were registered on domestic flights and 400,887 on international services. Charters accounted for 2% of total passenger numbers and amounted to 10,831. The average cabin load factor stood at 56.2%, down 15.6 points on 2019. The carrier operated a total of 10.054 flights, which is 3.145 fewer than in 2019. The carrier had 937 employees on its books by the end of June, which is down from 1,040 three years ago. It currently operates a fleet of twelve aircraft, five of which it owns, including one Airbus A320 and four A319s.

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