Croatia Airlines achieved a net profit of 420 thousand euros in the second quarter

U first semester 2024. The Croatia Airlines ( CA ) flew to 28 international and eight domestic destinations and achieved a flight of 16.835 block hours, while 12.330 flights were made in the same period.

The total number of transported passengers was 814.553, which is 5 percent more compared to the same period in 2023. Realized passenger kilometers increased by 6 percent, with an average passenger cabin occupancy (PLF) of 62,2 percent. The number of passengers in domestic regular traffic increased by 7 percent, and in international regular traffic by 6 percent compared to the first half of 2023. 

In the second quarter of 2024, a net profit of 420 thousand euros was realized. In accordance with the plans of the Croatian national carrier, but also with the current situation in the air transport industry worldwide, which is characterized by a low degree of profitability, the net loss of the period of low demand in the first quarter of 2024 was 9,92 million euros, and the net loss of the period January - June 2024. was 9,5 million euros. 

This is a short summary of the operations of Croatia Airlines in the first half of 2024.

All of the above is very much conditioned by the transition period of the beginning of the replacement of the fleet, which is expectedly characterized by increased cost exposure of all, and especially operational business processes, they state from CA and add:

"In order to carry out the planned flight schedule, Croatia Airlines had to rent aircraft on a short-term basis, which resulted in increased costs of aircraft maintenance and short-term rental of the same compared to the same period last year, which amounted to 10,4 million euros. Thanks to  the above  slots in the airports are preserved, while the investment in new lines will be positively valorized when a larger number of A220 fleet aircraft begin to operate, which is specifically planned as early as 2025." 

Total business revenues are 3 percent higher compared to the first half of 2023. The largest share (87 percent) in total business revenues refers to revenues from passenger transportation, which are higher by 7 percent, with a growth in the number of passengers of 5 percent in the observed period.

Realized operating costs are higher by 14 percent compared to the realized costs of the first half of 2023, and the main influence on their growth (67 percent of the nominal amount of the increase in total costs) are the costs of short-term aircraft lease that arose due to the need to bridge the maintenance period of the Airbus fleet as and higher aircraft maintenance costs.

Inflationary trends, the increase in air traffic (+2 percent) and the increase in the number of passengers (+5 percent) had an additional impact on the growth of costs. The increase in salary of Croatia Airlines employees also affected the increase in costs compared to the first half of 2023, with a 10 percent increase in gross wages implemented from April 1, 2023, which includes a significant increase in the lowest wages in the company, with the aim of mitigating the negative the impact of inflation. 

In the first half of 2024, activities related to the acceptance of the first two new Airbus A220 aircraft into the fleet continued intensively, in accordance with Croatia Airlines' "Post Covid" strategy. The first Airbus A220 aircraft entered the fleet on July 30, 2024, while the second is expected in December 2024.

/ / / The first Airbus A220 aircraft of the new fleet of Croatia Airlines landed in Croatia

This business year marks the 35th anniversary of the establishment of Croatia Airlines, the Croatian national air carrier, which during its existence made a significant contribution to the development of air traffic in the region.

"Since its establishment in 1989, Croatia Airlines has continuously worked on expanding its flight network and improving services, which made it a key factor in connecting Croatia with other parts of Europe and the world. The renewal of the fleet of the national airline marks a new period of business, which will be decorated with a refreshed visual identity through which, with an even greater orientation towards passengers and the target public, and following the trends and habits of passengers, the values ​​of Croatia Airlines will continue to be consistently communicated." conclude from CA.

Photo: CA