Higher fuel prices lead to €15.2 million loss at Croatia Airlines

Croatia Airlines has seen its losses widen to 15.2 million euros during the first quarter of the year despite increased revenue, with the carrier blaming higher fuel prices for its lacklustre performance. It represents the airline’s worst first quarter financial result in at least eight years. The loss increased 19% compared to the same period in 2021, while costs soared 61%. Revenue grew 85% on last year but is still down 25% on the pre-pandemic 2019. “Considerable positive steps have been made compared to the first quarter of 2021, however, the increase in fuel prices significantly effects operating costs and the amount of cash outflow. The continuation of the war in Ukraine and the unpredictable nature of the pandemic continue to have a major impact on demand and, consequently, on income”, Croatia Airlines said. It added, “All of these may again raise questions about maintaining liquidity. The company is taking all necessary measures to actively manage liquidity and optimise the business. It continues to implement rigorous cost cutting measures, which is in line with the Croatia Airlines’ post-Covid strategy”.

During the first three months of the year, Croatia Airlines operated 4.149 flights, while sales were three times higher on the same period in 2021. Existing bookings between May and October show a notable recovery and are 2.3 times higher than last year, but still down 54% on the record breaking 2019. “Croatia Airlines has gradually increased its frequencies and renewed certain routes. Passenger behaviour in terms of bookings has changed significantly compared to the pre-pandemic years, with late bookings prevailing during the crisis and such trends continuing in 2022”, the carrier noted. Overall, Croatia Airlines had 939 employees by the end of March of this year.

Croatia Airlines handled 200.721 travellers during the first quarter of the year, up a notable 177.8% on 2021. It added 96.861 passengers. However, the figure is still down 42% on 2019. The carrier welcomed 56.428 travellers on its domestic services, up 122%, while 142.149 passengers flew on international flights, representing an increase of 214%. The remaining 2.144 customers were handled on charter flights, up 36%, although charters accounted for just 1% of total traffic. The airline noted that these operational results were better than anticipated. The carrier’s average cabin load factor stood at 51.4% which is up by 6.6 points on 2021. On domestic services, the figure stood at 49%, An improvement of 13.8 points, while the average load factor on international flights amounted to 51.9%, up 2.2 points. Overall, the airline increased capacity on its international operations by 194% compared to the first quarter of 2021.