Croatia Airlines eyes €1 million profit in 2018

Croatia Airlines anticipates recording a net profit of one million euros by year's end following an 11.4 million euro loss over the first quarter. The carrier's CEO, Jasmin Bajić, said the result would be achieved despite the ongoing costly short-term wet-lease of additional equipment and the cancellation of 180 flights since the start of the year. "We are trying to reduce the number of cancelled flights by leasing aircraft from other companies but we are also keeping an eye on our costs and staying within our planned budget expense limits for this year. It is correct that the number of cancelled flights has doubled compared to last year, but this is not as dramatic as it seems since we have so far operated over 8.000 flights up until May 15, with just 1% of them cancelled", Mr Bajić said.

There has been growing discontent among Croatia Airlines' staff with a number of them, most notably mechanics, leaving the carrier. This has resulted in additional time required to service aircraft, forcing the airline to wet-lease over a dozen different jets from various airlines over the past few weeks. Additional aircraft will be leased between May 18 and May 24. "It is incorrect to say that our workforce is shrinking, with exception to our mechanics of which 10% leave the company each year, especially since Croatia joined the European Union. All of those who leave are quickly replaced, as is regular practice at other airlines around the world", Mr Bajić noted. The CEO added that the carrier is experiencing some issues, as was the case in the past and will be in the future, but that these problems are similar to those faced by other companies.

Croatia Airlines recorded a net profit of 3.6 million euros in 2017, although the result was achieved on the back of the sale of its five weekly slot pairs at London's Heathrow Airport for eighteen million euros. "Some of our flights this year will be unprofitable. Currently, we have more routes which are unprofitable", the CEO said. The government recently approved for Croatia Airlines to take out an 8.5 million euro loan to finance the overhaul of its aircraft engines this year. The loan, which is being provided by two banks, one of which is state-owned, must be repaid by December 31, 2022. Meanwhile, the carrier has managed to improve its operational results so far in 2018. Up until May 15, Croatia Airlines handled 603.000 passengers, representing an increase of 11% on 2017. During the first fifteen days of this month, the carrier welcomed 98.000 travellers on board its aircraft.