Croatia Airlines Posts €9 Million Loss Amid Fleet Transition
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- 01 Nov 2024
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Croatia Airlines has reported a net loss of €9 million for the first nine months of 2024, a significant decline from the €7.1 million profit recorded during the same period in 2023. This downturn is primarily attributed to the airline's ambitious transition to a new fleet of Airbus A220 aircraft, which has incurred substantial costs alongside rising inflation and increased operational expenses.
Total revenue for the period reached €206.1 million, remaining comparable to the previous year. However, operating expenses surged by 9% to €215.1 million, driven by higher maintenance, leasing, and personnel costs. The need for additional short-term leases to cover maintenance schedules during the fleet transition further exacerbated these expenses, leading to an €11.6 million increase in operating costs.
Despite the financial losses, Croatia Airlines experienced growth in several operational metrics. The airline handled 1,424,916 passengers, marking a 5.5% increase year-on-year, although this figure remains 16.2% lower than pre-pandemic levels in 2019. International flights saw 1,046,208 passengers, up 6.9%, while domestic services welcomed 333,096 passengers, reflecting a 6.3% increase. However, charter services experienced a decline, with a 21.7% drop in passengers.
Looking ahead, Croatia Airlines is optimistic about achieving financial stabilization once the Airbus A220 fleet is fully operational. The airline expects that the new aircraft will lead to lower maintenance and fuel costs, alongside increased passenger capacity, which should enhance profitability in the medium term. Additionally, the airline is focusing on expanding its network and improving service offerings, such as digital boarding tools and baggage tracking, to drive customer satisfaction and loyalty.
