“Croatia Airlines in the first nine months of 2022 transported 1,087,997 passengers, almost twice as many as in the same period of 2021, while the total sales in the same period are two and a half times higher than the sales of the previous year, which confirms the fact that the demand for services of air traffic continues to grow after the biggest crisis in the history of air transport caused by the coronavirus pandemic.
In accordance with the above, Croatia Airlines completed the first nine months of 2022 with an operating loss of HRK 70.5 million, i.e. a net loss of HRK 99 million, where it should be noted that in June 2022, the first positive monthly financial result was achieved, while the result of the third quarter represents the first positive quarter since the beginning of the crisis caused by by the COVID-19 pandemic with an operating profit in the amount of HRK 99.8 million, i.e. net profit at the level of HRK 65.1 million.
In the first nine months of 2022, Croatia Airlines achieved a rush of 24,908 block hours, and 17,586 flights were recorded, which represents an increase of 57 percent in block hours and a 50 percent increase in the number of flights compared to the same period in 2021.
Total business revenues are 93 percent higher than in the first nine months of 2021. The largest share (80 percent) in total business revenues refers to revenues from passenger transportation, which are twice as high compared to the period January – September 2021, but still 21 percent less than the same period in 2019, and as still a logical consequence of the negative impact of the COVID-19 crisis on the company’s operations.
The abolition of epidemiological measures before the summer season led to a stronger growth in traffic and passenger revenues in the second and third quarters compared to the same periods last year. Passenger revenues in the second quarter compared to the same period in 2021 are almost three times higher, i.e. they have increased by HRK 200 million, while in the third quarter they are higher by HRK 223 million. Realized passenger kilometers increased twice, with a passenger load factor (PLF) of 61.9 percent, which is 11.2 percentage points more than in the same period in 2021. The number of passengers in domestic regular traffic is 1.6 times higher, and in international regular traffic by two times, compared to the same period last year.
Realized operating costs are higher by 65 percent compared to the realized costs of the first nine months of 2021, and are primarily the result of an increase in the number of flights, a large increase in the number of passengers, and a significant increase in fuel prices. The overall effect of the increase in the price of jet fuel in the first nine months of 2022 negatively affected the financial result by HRK 173.4 million. The increase in costs was realized in all categories of operating costs except depreciation, and is partly the result of inflationary trends.
All the business activities and rationalization measures undertaken at all levels of the company during the crisis caused by the coronavirus pandemic and in the past period have contributed to the further improvement of the efficiency of the national airline’s operations, which, in accordance with the adopted Post-Covid strategy of Croatia Airlines, will continue in the coming period, with the aim of adapting as well as possible to the future market conditions and ensuring the long-term sustainability of business.
According to IATA forecasts from June 2022, a stronger recovery of the global aviation sector from the consequences of the coronavirus pandemic is expected than previously estimated, and the estimated loss in 2022 is 9.7 billion dollars compared to 42.1 billion dollars minus in 2021. year. For European airlines, a loss in the amount of 3.9 billion USD is expected in 2022 compared to the realized in 2021 in the amount of 11.9 billion USD.
Continuously adjusting its flight schedule, and in the desire to respond to the demands of the market and passengers, during the summer season of 2022, Croatia Airlines directly connected Croatia with 22 international destinations, i.e. 23 European airports, and the company’s planes flew on 40 international routes. In the summer flight schedule, the company has further expanded the network of international destinations by introducing five new international routes from Split Airport to Amsterdam, Bucharest, Dublin, Milan and Stockholm, and flights on the seasonal route Split – Prague, which was first introduced last year, have also been renewed. The Osijek-Munich line has become a year-round line, which provides passengers from the Osijek-Baranja County area with a direct connection to Europe throughout the year. Flights were also intensified on other existing lines in international and domestic traffic.
During the next winter period 2022/2023 it is planned to connect Croatia with 13 European destinations through the introduction of new international lines (Split – Zurich, Pula – Zurich), the extension of flights on certain seasonal lines (Rijeka-Munchen, Zagreb-Dublin), and the total number of flights and available seats will increase compared to to last year’s winter period. At the same time, it is planned to operate more than 8,500 regular flights and offer around 869,000 seats, which is 28 percent more flights and seats compared to the winter flight schedule of 2021/2022 and represents a strong contribution of Croatia Airlines to the development of the Croatian tourist product and the improvement of the transport infrastructure of the Republic of Croatia during the winter months.”
