The flag carrier of Croatia has released its financial results for the first half of 2023. Croatia Airlines has announced a net profit of 1.69 million Euros ($1.87 million). The airline has significantly improved from the same period last year. Last year, the airline posted a net loss of 21.8 million Euros ($24.06 million). Additionally, the airline improved from its pre-pandemic results that were posted in 2019. In the first half of 2019, the airline recorded a net loss of 11.9 million Euros ($13.13 million).
Significant improvements over the past year
Interestingly enough, the major improvements that allowed the company to profit over the first half of the year were accomplished in the second quarter of 2023. The airline recorded a net loss in the first quarter but was able to improve enough in the second quarter to record a net profit of 1.69 million Euros ($1.87 million).
Throughout the first half of 2023, which is January to June, the airline increased its revenue by 52% when compared to the first half of 2022. This increase was driven by an 83% increase in income from passenger transport. Additionally, the airline’s expenditure grew by 14% compared to 2022. This was mostly due to an increased number of operated flights.
Croatia Airlines released a statement following the financial results of the first half of this year. The airline stated,
The company was able to post a profit while still noticing an increase in expenses. The largest increase in the airline’s expenses was due to fleet maintenance. This was largely due to the number of operating flights increasing and the airline’s fleet beginning to age. To counteract this, Croatia Airlines began making delivery payments for several incoming Airbus A220 aircraft. The airline expects to begin receiving these aircraft in the first quarter of 2024.
Croatia Airlines sees a large increase in passengers
Driving the net profit over the year was the large increase in passengers that the airline saw. In the first half of 2023, Croatia Airlines saw 773,000 passengers fly the airline. This was a 39% increase when compared to the first half of 2022. However, this does still not reach the pre-pandemic levels in 2019. This year’s number of passengers was 19.5% less than the first half of 2019. Croatia Airlines is expecting to reach this level by next year.
Croatia Airlines recorded nearly 190,000 passengers on domestic flights. Domestic flights had a load factor of 58.9%. An additional 565,000 passengers traveled on international flights with an average load factor of 64%. The remaining 18,000 passengers were traveling on chartered flights.
The airline posted an average cabin load factor of 63.7%. This was 7.5 points better than last year, but was still down 7.4 points when compared to 2019.
Source : Simple Flying
