Tuesday, August 10, 2010

Croatia Airlines losses quadruple

Croatia Airlines pins hopes on summer season
In the first half of the year, losses at the largest EX-YU carrier in passenger terms, Croatia Airlines, quadrupled. The airline recorded a loss of 131.6 million Kuna (18.2 million Euros). This is in comparison to the first six months of 2009 when losses amounted to 34.4 million Kuna (4.7 million Euros). However, the management at Croatia Airlines remains optimistic, saying that it expects the losses to decrease by the end of the year. The management has come to this conclusion drawing upon increasing booking numbers for the third quarter and the fact that losses for the first six months are always greater compared to the second half of the year, due to the extreme seasonality of air travel in Croatia.

While most other airlines in the region have begun to bounce back after the global financial crisis, Croatia Airlines is still struggling. The Croatian carrier saw passenger numbers decrease by 9% in the first five months of the year with results for June and July yet to be published. This is in comparison to Adria Airways’ decrease of 3.9% and Jat Airways’ increase of 0.6% for the same period. The airline is still pinning its hopes on the peak of the 2010 summer season, which has, so far, been very successful for the Croatian tourism industry.

1 comment:

  1. Not the way to run a business.

    Yes, they need to get back to profitability. But not using this approach where record numbers hide the incompetence of management, or an inability to grasp basic fiscal control of a company and reduce costs.

    An important airline in the region, it can't afford to go belly-up. But the constant calls for privatisation or merger are useless if it can't get its house in order ASAP.

    ReplyDelete

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