Croatia Airlines posted a media release on the occasion of the publication of financial results for the first 9 months of 2023. The release is transmitted in its entirety.
“Croatia Airlines, the Croatian national airline, ended the first nine months of 2023 with an operating profit of 8 million euros, which together with financing net result makes a net profit of 7.1 million euros. This is a positive shift of 20.2 million euros compared to the same period in 2022. The achieved financial result is significantly better than the result in the same period in 2019, when a loss of 6.4 million euros was realized.
Continuous monitoring of the current situation on the market, trends and passenger needs, implementation of strategic initiatives defined by the Post-Covid strategy and adjustment of the flight schedule, increase in frequencies, renewal of certain lines and introduction of new ones, with an average of 73 flights per day, during the first nine months resulted in the growth of 14 percent in flights (a total of 19,999 flights) and 13 percent in block hours (a total of 28,083 block hours) compared to the same period in 2022. In the first nine months of this year, a total of 1.35 million passengers were transported, which is 24 percent more compared to the same period in 2022. The number of passengers in domestic regular traffic increased by 19 percent, and in international regular traffic by 25 percent, compared to the same period last year. Number of kilometers per passenger increased by 22 percent, and a passenger load factor (PLF) 65.9 percent, which is 4.1 percentage points higher than the first nine months of 2022.
Total business revenues are 27 percent higher than in the same period last year. The largest share (83 percent) in total business revenues refers to revenues from passenger transportation, which are higher by 32 percent compared to the same period in 2022. At the same time, the share of passenger revenues increased from 80 percent to 83 percent (+3 percent) compared to the same period in 2022, which is the result of traffic growth. It should be noted that the company grew in passenger revenues in all three quarters compared to 2022, and total passenger revenues in the first nine months of this year were 5 percent higher than in the pre-pandemic 2019.
Operating costs are higher by 15 percent compared to the costs in the first nine months of 2022. They are primarily the result of an increase in the number of flights (+14 percent) and an increase in the number of passengers (+24 percent).
During this year’s tourist season, Croatia Airlines directly connected Croatia with 24 international destinations, i.e. 25 European airports, and the company’s planes flew on 44 international routes. During that period, more than 17,000 flights were operated, and more than 1,820,000 seats were offered. In the summer flight schedule, Croatia Airlines further expanded the network of international destinations by introducing new international flights from Split to Oslo and Skopje, from Dubrovnik to Prague, from Brač to Munich, and from Zagreb to Mostar.
In 2023, the national airline cooperates with 16 codeshare partners, of which 13 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 SkyTeam alliance (Air France, KLM and Alitalia/ITA Airways).
The achieved result of Croatia Airlines in the first nine months 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 infustry is expected to return in 2023.
During 2023, activities are intensively taking place related to the arrival of the first new A220 aircraft into Croatia Airlines fleet, starting in 2024. In the period until 2027, the plan is to replace all existing aircraft in the fleet with 15 new A220 aircraft, as foreseen by the Post-Covid strategy.
In accordance with all of the above, Croatia Airlines, the Croatian national air carrier, remains a strategically important part of the Croatian transport and tourist infrastructure, ensuring the conditions for additional improvement of business processes and 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, as well as the welfare of the Croatian economy.”
