Croatia Airlines in the black after five years as passenger numbers decline
Croatia Airlines has published its official financial results for 2013, showing the carrier ended the year in profit for the first time in five years. The national airline was in the black with 87.450 euros. Results show the airline cut costs by 10% compared to 2012. The news comes at a time the Croatian carrier is looking for a new part owner. “During 2013 all activities were directed towards the restructuring process. Restructuring is necessary for the long term sustainability of Croatia Airlines under Croatian and European Union laws”, the airline said commenting on its financial results. It adds, “The biggest obstacle facing Croatia Airlines is the high seasonality in passenger flow. During the winter the airline has a market share of 66% but continues to record losses while during the summer the share amounts to between 23% and 36% and makes a profit”.
The Croatian national carrier handled 1.796.885 passengers in 2013, a decrease of 8% on the year before. As a result, the airline has maintained its position as the busiest carrier in the former Yugoslavia. Its average cabin load factor stood at 68.8%, just down from 69.1% in 2012. The airline recorded an increase in the number of passengers travelling on domestic flights by 5.8% while, in total, Croatia Airlines had a market share of 34%. The carrier explains its drop in passenger numbers comes as a result of the sale of one of its Airbus A320 aircraft as well the eight day cabin crew and pilot strike staged last May. The airline’s on time performance stood at 84.1%, just above the European industry average.
Croatia Airlines says the results indicate the restructuring process has so far been successful and justified. The restructuring is set to continue throughout this year and is to be completed in 2015, if the airline does not find a part owner in the meantime. The national carrier says its performance is highly dependent on that of the Croatian economy and its recovery will also lead to an improved performance by the airline.