Croatia Airlines has registered a net profit of 1.69 million euros during the first half of the year marking a significant improvement on the same period in 2022 when it registered a 21.8-million-euro net loss. The half yearly result is also up on the pre-pandemic 2019 when the carrier recorded a 11.9-million-euro loss. The improved finances were achieved during the second quarter of the year, following a loss making first quarter. “The first half of 2023 was characterised by strong growth in demand for air travel following the coronavirus pandemic. Accordingly, Croatia Airlines has increased frequencies and introduced new routes, which has resulted in the increased number of flights. Positive trends on the market, strong growth in income, as well as the stabilisation of the price of fuel have all contributed to the significantly improved financial results during the first half of 2023”, the company said. Croatia Airlines expects to return to overall annual profitability in 2025, with the slower winter months still posing a challenge for the carrier.
During the first half of the year, revenue increased 52% on the same period in 2022. The largest share of revenue (83%) was generated by income from passenger transport, which grew 58%. Expenditures grew 14% on H1 2022, primarily as a result of the increased number of operated flights. The biggest increase in expanses was recorded in fleet maintenance due to increased flying time and the company’s aging fleet. During March and April, Croatia Airlines made pre-delivery payments for its incoming Airbus A220 aircraft, the first of which is expected to join the fleet during the second quarter of next year.
Croatia Airlines handled 773.300 passengers during the January - June period, representing an increase of 39% on last year, but still down 19.5% on the pre-pandemic 2019. The carrier expects for its passenger numbers to reach pre-Covid levels next year. The company’s average cabin load factor during the first half of the year stood at 63.7%, which is up 7.5 points on 2022 but down a notable 7.4 points on 2019. The carrier welcomed 189.245 travellers on its domestic flights with a load factor of 58.9%, while 565.739 passengers flew on international services with an average cabin occupancy rate of 64%. The remaining 18.346 customers were transported on charters.
I guess putting greater focus on Split is paying off
ReplyDeleteSPU flying started in May I believe.
DeleteSo the result came from ZAG operations.
With the cabin load factor down 7.4 points on 2019 it means that is registered a big improvement on RASM.
Considering how high the prices are, it is not surprising. I think it led to most European carriers being profitable or seeing record profits.
DeleteAlso don't forget that OU had staffing issues so they had less expenses regarding salaries and so on.
DeleteIn revenue terms there is a difference between SOLD and FLOWN coupons... Let's wait and see if there will be anything to see.
DeleteBragging with such minute profit indicates something else; there is maybe a change towards the Company ahead by the financiers.
Anyone know when they started flying out of SPU?
ReplyDeleteSeems like they know what they are doing, people are attacking them without any good reason. Just shows how much they need to focus on the coast and on profiting from a strong and well established relationship with Lufthansa.
They started focusing on Split as of last year
DeleteSo called analyst said moving to Split was bad idea. 😀
DeleteI meant what month this year, when did they open their mini base there.
DeleteThey started flying new routes from Split somewhere around mid June of 2022.
DeleteNice so this profit was achieved before SPU flights started. Way to go OU! So I expect H3 profit to be around 10 million Euros.
DeleteAlmost all Split flights start in May
Deletehttps://www.exyuaviation.com/2023/03/summer-2023-croatia-airlines.html
Yes but these flights were first started in mid June of 2022.
DeleteSince SPU started in May it means that is what brought them this profit. Also did they get some subisidies this year from Osijek or from one of the regions to promote their crackers and snacks onboard?
DeleteAnonymous 09:46
DeleteThese flights are seasonal. For the first half of this year they started in May.
@9.55
Deletemoney for crackers are literally the least important. They get money from Osijek to fly routes like Munich.
Guys don't forget that even though SPU started in May, their revenue jumped before that before sales started much earlier. I supposed most people started booking their flights from March onward. SPU sales must have been strong to have pushed them into profitability. We all know their ZAG operations alone can't get them to a profit.
DeleteGood that there is some profit. LF is still poor though
ReplyDeleteBravo Hrvatska!
ReplyDeleteHi, where is the man from Rijeka??? Good news Croatia Airlines
DeleteThe man from Rijeka is here. And yes, this is good news. But they should have at least 50 more good news to become serious, big and successful airline. And the man from Rijeka will keep criticizing them for as long as needed, no matter what you and similar to you think about it
DeleteGreat. Almost all airlines in Europe have record profitability in the first half. A profit of 1 million euros isn't something to celebrate
ReplyDeleteIndeed, it's good they managed to be profitable but it is expected of them at the beginning of the summer season. Problem is that what they make in summer won't be enough to keep them going through the winter.
DeleteI think we can all agree that Aegean Airlines is a well run company and located in a tourism powerhouse.
DeleteYet in its 25 year history it has never shown a profit for that first half of the year.
1st quarter losses were always grater than 2nd quarter profits.
So do not belittle OU's achievement
Are you seriously comparing OU and A3? Are you aware that Aegean is located in a country with almost 11 million people which is a global tourist destination and whose one island airport in Rhodes handles more traffic than ZAG?
DeleteBut do we know how much did they have to pay as deposit for the new A220s in first half of 2023?
DeleteAnonymous 09:56
DeleteThank you for trying to twist my point and thus proving it valid!
Being profitable for the first 6 months when you are located in a market greatly dependent on tourism is a big deal. A3 who is located in a global tourist destination had never achieved profits in the 1st half, that goes to show how seasonal markets like Croatia and Greece are.
Again, it is not true that Aegean has never been profitable in H1. Please stop repeating this lie.
Deletehttps://www.reuters.com/article/aegeanair-idINLS12219820090828
https://www.aviationnews-online.com/airline/aegean-reports-a-drop-in-h1-profits/
Issue with Croatia is that most of its coastal tourists do not take the plane. There are over 14 million tourists in the country but the airports on the coast handle like half of that. Lots more to do to promote HR among higher yielding tourists.
Delete@10:21 They were profitable back in 2009? And weren't since? Why?
DeleteThey were profitable since. You just can't be bothered to read and would rather keep lying to yourself and others.
Delete"1st quarter losses were always grater than 2nd quarter profits."
DeleteSorry, are you claiming that Aegean doesn't make full-year profits? Fine if it had escaped you that they have an excellent profitability record year after year, but please check the facts before posting.
Worst day for pozdrav iz Rijeke so far this year!
ReplyDeleteShows that people in Buzin know what they should do in order to stay profitable. Congrats to the team leading OU towards a better tomorrow and their A220.
DeleteYou are seriously congratulating a bunch of people who managed profitability in one half after 6 years?? No wonder the airline is run by who it is run.
DeleteAnon 09:24 we need the real Pozdrav to post.
DeleteImitators just can't reach his level of anger. 😆
Pozdrav is angry because the airline is poorly run, which it definitely is. An airline with a market such as Croatia with its huge potential is being wasted. You celebrating a 1 million euro profit while an airline in a poorer country with a much smaller market next to you had a profit of 22 million in H1 shows why the government is able to put in power people such as Jasmin bajic to run the airline for so long. You are part of the problem.
DeletePozdrav has the right to criticise, don't see anything wrong about this. We can't all agree on the same thing.
DeleteI like his comments because he is a rare person from Croatia who is critical of OU on here. Most people write fairytales about what should be done etc while he writes what their mistakes were and how they can fix them
Delete@10.00, @11.02, @11.06
DeleteThanks! You said everything.
@09.15
This is not bad day for me at all. I am happy OU finally managed to get out of the red, although probably temporary only. I am sorry you are not clever enough to see I want bigger and better OU which would have positive financial results regularly and not ocassionally
@09.17
Dobar dan Jasmineeeeeee!!!! 😃
Now that's what I'm talking about!
ReplyDeleteOh really?
DeleteProfitabilni sa 63,7% LF, jedinstven slučaj u svetu.
Delete:-)
DeleteLF 63% = this is so sad
Anon 09:43
DeleteAnd yet they managed to be profitable. Imagine if their LF reaches 2019 levels.
Some peoples heads might explode.
You do a relize that a profit of 1 million in an era when all European airlines are posting record profits is a disaster right?
DeleteAnon 09:48
DeleteYou do realize that 1.69 million euros of net profit during the first half of the year is a better result than an airline like Aegean has ever had in the 1st half of the year in all of its history, right?
I think you do and thus your anger.
My anger? I couldn't care less, I'm just surprised that you would be celebrating a one million euro profit and could be so naïve to think this is an outstanding success. Also your statement is actually not correct about Aegean as they have been profitable on numerous occasions during H1. And lets wait to see their profit in H1 2023 as they have not published their result yet.
DeleteAnon 09.53
DeleteSince OU performed better than A3, maybe it's Croatia Airlines that will buy Aegean!
Plot twist!
I think the blind urge to wear pink glasses get the better of some people’s reality.
DeleteAnon 09:56
DeleteA3 has never had a profitable first half in its history.*
It will probably have this year.
Being profitable for the first 6 months when you are located in a market greatly dependent on tourism is a big deal Sorry if that upsets you for some strange reason.
* https://en.about.aegeanair.com/media-center/press-releases/
Again, it is not true that Aegean has never been profitable in H1
Deletehttps://www.reuters.com/article/aegeanair-idINLS12219820090828
https://www.aviationnews-online.com/airline/aegean-reports-a-drop-in-h1-profits/
Anonymous 10:17
DeleteYou are right, they were profitable once, 14 years ago! LOL
Again you didn't even look at the links. They were profitable several years. But really no point in arguing with you. Keep lying to yourself it makes you happy, just don't misinform others in the process.
DeleteIt doesn't matter when they were as long as they were (Aegean).
DeleteAlso don't forget that in accounting an investment loan isn't categorized as a loss or expense so the money OU got for the A220 doesn't impact their balance sheet. If they had to show it in their books as an expense then the profit would have instantly disappeared.
Accounting can be an art for the very creative types.
A3 hasn't had a profitable 1st quarter in 14 years. So OU achieving it is not worth mentioning it.
DeleteSo much misplaced anger.
There is literally a link showing they were profitable in H1 2014 and 2015. Your math isn't your strong suit.
Deletehttps://www.aviationnews-online.com/airline/aegean-reports-a-drop-in-h1-profits/
Please be informed that Q1 and H1 isn't the same thing.
DeleteBut we are talking about H1. Croatia Airlines wasn't profitable in Q1 either.
Delete@10.27 learn the difference between H1 and Q1. Croatia Airlines was loss making in Q1.
DeleteMost Airlines make Q1 losses.
DeleteThat isn't the point. The point is that the ambassador of Croatia Airlines here doesen't know the difference between Q1 and H1 and is mixing both up.
DeleteAmbasador? I would rather call it Party bot or Uhljeb
DeleteI also find it interesting they can be profitable in the weaker half of the year with such a massively bad LF plus the paid deposit for new planes in that H1!
ReplyDeleteThey take out loans. You seriously think they paid a plane deposit from their revenue?
DeleteLoans = uncontrollable pumping of tax payers’ money into a failed project, without a requirement to ever return a cent.
DeletePlus they took an investment loan which is not shown like an expense in the books.
DeleteExactly!
ReplyDeleteThey reached break even / small plus with this LF. This just shows how profitabile they can be with LF of around 70% per year average. As a loyal customer I am really happy to see their finances improved finnaly.
ReplyDeleteCongratulations OU and next year with the A220s, you will be unique in the region. Excellent job!
ReplyDeleteReminds me of Malev when Varadi was the CEO. He got extremely expensive 737NG planes and everyone was proud of them when in reality they ended up killing them. OU can't afford to have the A220 with current revenue and low profits. They need to boost both of those in order to surivive and see a better tomorrow.
DeleteVaradi was CEO of Malev?!? didnt know
DeleteYes he was back in the early 2000s. He messed Malev up and moved on to Wizz Air.
DeleteCestitke oz Crne Gore
ReplyDeletejust move your hub to SPU year round , ZAG will be fine with connections to the SA hubs
ReplyDeleteCongrats!
OU's average price on flights AMS, BRU to the Balkans (ZAG, SKP, SPU, SJJ) tends to be sometimes twice as expensive compared with Lufthansa group on same dates/ destinations (OS cheapest, then LX then LH). I wonder to what extend this is a factor driving their profitability. Good on them for sure, shows a different trajectory so I would not dismiss or diminish this good news for Croatia Airlines
ReplyDeleteI guess the LF from Split were 80% but when you combine it with the results of zagreb which i am sure were 50% makes the average of 67 or 63 i forgot.
ReplyDeleteIt obviously works with prices they have.
DeleteMy 3 flights SPU-MUC was LF 100%
Deleteat 1640:
DeleteWas it an airplane or Dash?
Hahahahahahahaha, airplane or Dash, you made my day 😃
Deleteunfortunately it was a dash twice. Once A319…
DeleteDash is really out of date and often an imposition. Since I fly to Split all year, I am looking forward to the A220. In the summer I therefore prefer Lufthansa or Austrian
Who cares?
ReplyDeleteNet income is subject to all kinds of one-time-off gimmicks. Operating income would be a better measure to report.
ReplyDeleteWhat did they sell this time?
ReplyDelete