Croatia Airlines records financial profit in the first half of 2023

Below is the media release of Croatia Airlines, published on the occasion of the publication of the financial results for the first half of 2023. The release is transmitted in its entirety.

“Croatia Airlines, the Croatian national airline, ended the first half of 2023 with an operating profit of 2.6 million euros, which with the net result of financing gives a net profit of 1.7 million euros, which represents a positive shift of 23.5 million euros compared to the first half of 2022.

It is important to emphasize that the achieved financial result of the first half of 2023 is significantly better than the result recorded in the first half of the pre-crisis year 2019, when a loss of 11.9 million euros was realized.

With constant monitoring of market needs, adjustments to the flight schedule, increased frequencies and renewal of individual routes, which, with an average of 67 flights per day, resulted in a surge of 20 percent compared to the same period in 2022, the achieved positive result with the constant improvement of business processes contributed and positive market trends, strong income growth as well as fuel price stabilization.

In the first half of 2023, Croatia Airlines achieved a flight of 16,461 block hours, and 12,070 flights were recorded. The total number of transported passengers was 773 thousand, which is 39 percent more compared to the same period last year. At the same time, 29 percent more passengers were transported in domestic regular traffic compared to the same period last year, and 41 percent more passengers in international regular traffic than in the first half of 2022. The realized passenger kilometers increased by 35 percent, and the passenger load factor (PLF) was 63.7 percent, which is 7.5 percentage points more compared to the first half of 2022.

Total business revenues are higher by 52 percent compared to the period January – June 2022. The largest share (83 percent) in total business revenues refers to revenues from passenger transportation, which are higher by 58 percent compared to the same period last year, with a growth in the number of passengers of 39 percent. Croatia Airlines achieved growth in passenger revenue compared to the pre-pandemic year 2019, and in both quarters of 2023 by 10 percent.

Realized operating costs are higher by 14 percent compared to the realized costs of the first half of 2022, and are primarily the result of an increase in the number of flights (+20 percent) and an increase in the number of passengers.

During the tourist season, Croatia Airlines directly connects Croatia with 24 international destinations, i.e. 25 European airports, and its planes fly on 47 international routes. In total, more than 17,000 flights are planned, and more than 1,820,000 seats are offered. In the summer flight schedule, Croatia Airlines further expanded the network of international destinations by introducing new international lines from Split to Oslo and Skopje, from Dubrovnik to Prague, from Bol on the island of Brač to Munich, and by re-introducing the line Zagreb – Mostar.

In 2023, the Croatian national airline cooperates with 16 code share partners, 13 of which relate to companies from the Star Alliance (Lufthansa, Austrian Airlines, Swiss, Turkish Airlines, TAP, SAS, Brussels Airlines, United Airlines, Air Canada, LOT, Singapore Airlines, Air India and Asiana Airlines), and three to members of the Sky Team alliance (Air France, KLM and Alitalia/ITA Airways).

The achieved result of Croatia Airlines in the first half of this year also follows the forecasts of the International Air Transport Association (IATA), according to which, after the historic losses suffered by the airline industry due to the coronavirus pandemic and related travel restrictions, profitability of the airline industry is expected to return in 2023.

Croatia Airlines, the Croatian national air carrier, with a clear strategy and renewal of the fleet, i.e. replacement of existing aircraft with a new unified fleet in the period from 2024 to 2027, remains a strategically important part of the Croatian transport and tourist infrastructure, thus ensuring the conditions for additional improvement of business processes and the operational and financial efficiency of the company, which will also in the future ensure competitive operations of the national airline to the satisfaction of all employees and passengers and the benefit of the Croatian economy.” – states the national airline in a press release.

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