In the second quarter of 2024, Croatia Airlines achieved a net profit of 420,000 euros. This is in line with the carrier’s plans and reflects the current global air transport industry’s low profitability. Despite this, the company faced significant losses, with a net loss of 9.92 million euros in the first quarter of 2024 and a cumulative net loss of 9.5 million euros for the January-June 2024 period.
In the first half of 2024, Croatia Airlines operated flights to 28 international and eight domestic destinations, accumulating 16,835 flight hours and conducting 12,330 flights. The total number of passengers transported was 814,553, marking a 5 percent increase compared to the same period in 2023. Passenger kilometers increased by 6 percent, with an average passenger load factor (PLF) of 62.2 percent. Domestic regular traffic saw a 7 percent rise in passengers, while international regular traffic grew by 6 percent compared to the first half of 2023.
These results were heavily influenced by the transition period of fleet replacement, which led to increased costs, particularly in operational business processes. To maintain the planned flight schedule, Croatia Airlines had to lease aircraft on a short-term basis, resulting in an increase in aircraft maintenance and rental costs, totaling 10.4 million euros compared to the same period last year. This strategy ensured the preservation of airport slots. Additionally, the investment in new routes is expected to pay off when the A220 fleet is fully operational, anticipated in early 2025.
Total business revenues for the first half of 2024 were 3 percent higher compared to the same period in 2023. Passenger transportation contributed 87 percent of total business revenues, with a 7 percent increase in revenue and a 5 percent growth in passenger numbers.
Operating costs rose by 14 percent compared to the first half of 2023, driven primarily by the costs of short-term aircraft leases, which accounted for 67 percent of the total increase in costs. Other contributing factors included inflation, a 2 percent increase in air traffic, and a 5 percent rise in passenger numbers. Additionally, the increase in employee salaries, with a 10 percent gross wage increase implemented from April 1, 2023, to offset inflation, also impacted costs.
In 2023, Croatia Airlines reported an operating profit of 4.1 million euros and a net profit of 2.3 million euros, representing a positive shift of 20.4 million euros compared to 2022.