Croatia Airlines registered a net loss of 10.7 million euros in 2019, representing an improvement on the year before when the figure stood at eleven million. The company blamed its results on new IFRS 16 accounting standards, costs relating to aircraft overhaul and maintenance, as well as growing expenses under the European Union’s emission trading system. Revenue grew from 229 million euros in 2018 to 230 million last year, while expenditure remained mostly unchanged, totalling 238 million euros. It spent most on aircraft leasing, as a result of the wet lease for two Air Nostrum Bombardier CRJ1000 jets, as well as “unexpected” engine work on its fleet.
Croatia Airlines handled a record 2.179 million passengers during the year, an increase of 0.5%. The company operated 28.432 flights during 2019, which was up 1.5% compared to the year before. The average cabin load factor, a measure of seat capacity utilisation, stood at 73.6%, up from 73.5% in 2018. Passenger carrying capacity, measured in Available Seat Kilometres (ASKs), amounted to 2.3 billion, up 0.5% year-on-year. The airline’s cargo operations recorded a decline of 5.7%, with 2.135 tonnes of mail and freight uplifted in 2019, compared to 2.264 tonnes the year before. Overall, the carrier maintained flights to 38 destinations in 24 countries.
Croatia Airlines' market share on its home turf averaged 23% during the year, down from 25% in 2018 and 38% in 2017, although it peaked at 52% over the winter months (January and December). Its lowest market share was recorded in July and August when it averaged just 15%, marking its smallest monthly share on record and down 1% on the year before. "The high level of seasonality on the Croatian aviation market continues to pose a major problem for the company and its business. During the summer season, there are almost 100 airlines operating flights to Croatia, with more than a half of all passengers carried during the third quarter, while competition is minimal in winter. Croatia Airlines maintains flights throughout the entire year, providing Croatian airports with year-round connectivity", the carrier said.
Croatia Airlines is expected to be privatised during the year, with the government setting the month of June as a deadline to finalise a deal with a potential investor. The company recently outlined its plans for 2020, which includes two new seasonal routes, the long-term lease of two aircraft and one short-term wetlease.
Comments
'The company blamed its results on new IFRS 16 accounting standards, costs relating to aircraft overhaul and maintenance...'
They are like a ship without a captain, sailing aimlessly on the open ocean while their hull slowly decays and rots away.
Same can be the case with OU!
+1
They should have also said what the results would have been if they had used the previous accounting standards in order to be able to make a like for like comparison.
So it makes profits look smaller or losses look larger compared with the previous accounting conditions.
OU think OU's 10.7 million Euro loss is easily the smallest.
Serbian gov is only paying back the old debts which was part of the deal.
moze biti samo gore..natjecaj za novi pso jos nije objavljen,letovi iz osijeka i braca jos nisu pusteni u prodaju..to ce takoder u 2020 pridonjeti jos goroj sliku stanja kompanije i jos losije rezultate..
What is total minus they generated?
No, state aid is not calculated in the results by anyone.
How do you call 33.7 mil EUR?
The announced aid will probably be in 2020 report.
LOL, I have a great bridge across the Danube to sell you!
OU on the other hand has a huge gap in its fleet sans wet leased CRJs (do note that OU is missing a plane with seat capacity that all the airlines you mentioned use very effectively), it is very slow to react to market, it has sold LHR slots because LHR flights were “unprofitable” while a plane ticket from LON to ZAG costs almost as much as a plane ticket from LHR to JFK. It is losing market share every year, and amounts huge losses. Don't get me wrong, I like flying OU, their flight attendants who are always smiling, the fact that their pilots land more smoothly than pilots of other airlines I frequently travel with, their cabin interior design, even the livery. But their uncreative management is syphoning money, pocketing it while they can, and running the airline into the ground.
It is only the question if this loss includes this ilegal help or not.
And for all of those you mentioned AZ as the company who received state aid as well the following news
http://rs.n1info.com/Biznis/a574232/EU-proverava-da-li-je-italijanska-pomoc-Alitaliji-protivzakonita.html
It is just the question of time when we shall see the same news for OU
Could you please confirm if 13.5 mil are included into 10.7 mil loss?
This state cash injection was given to OU in 2019 and it must be seen in the books (at least as extraordinary income).
Thank you.
That and the low loadfactors is what makes all three loss making.
THAT is the goal of politicians of all parties. Keep state companies and their employees happy.
Best option for OU, and it would only work if the government supports this, separate the maintenance department from the carrier, to move all the support departments to whoever buys them (hopefully it will be Aegean)like sales, marketing, customer support, etc and keep only the operational departments in Zagreb (crew and operations).
Ground crew and handling should be outsourced, which will eventually show to be much more affordable especially during winter.
Government should make agreements with A3 about minimum required connectivity and let them decide how to run the company.
You would still have 12 aircrafts, and around 250 employees, instead of the current 1.000, and have at least the same connectivity. This way there is a chance that OU could survive.
Because you seem like someone who would believe anything!
"The high level of seasonality on the Croatian aviation market continues to pose a major problem for the company and its business".
The high demand summer period is a golden opportunity that no other ex-yu market has, so it should therefore be an OPPORTUNITY rather than a "problem".
The fact that this management doesn't see it that way, speaks volumes for the lack of competency and capability that this group of people has.
Shame on them.
Time for somebody else to be given a go.
If there is any time left
Disaster for any airliner of that size especially for national carrier of the country with such a tourism