Thursday, August 20, 2009

Major losses at Croatia Airlines

No sunny outlook for Croatia Airlines
Croatia Airlines has reported that in the first half of this year the airline is operating with a loss of 34.500.000 Kuna (4.7 million Euros). This is despite the fact that the airline managed to make a profit in the first 3 months of the year. The operational costs for the first 6 months amounted to 18.3 million Kuna or (2.5 million Euros). This is compared to the first 6 months of last year when the airline reported a profit of 823.000 Kuna or 112.440 Euros. The losses are despite the fact that the actual operational expenditures are lower than last year, mainly because the price of fuel is now lower than last year. However, the airline explains that the addition of larger capacity aircraft into the airline’s fleet has led to a financial loss. The airline also blames the global financial crisis for its loss.

Passenger wise the airline reports that in the first 6 months it saw a decline of 7%. This is a substantially lower passenger loss compared to other European carriers and other Ex-Yu competitors (Jat Airways -19.9% and Adria Airways -17.9%). The airline saw passenger numbers decline by 6% on international services which is the key money making sector for the airline. For the first 6 months the airline’s load factor was a less than average 56%, compared to the worst national European performer TAROM Romanian with 49.9%.

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