Croatia Airlines becomes profitable in H1

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.

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