Croatia Airlines registers €32.1 million loss


Croatia Airlines registered a net loss of 32.1 million euros during the first nine months of the year, up from its loss of 6.5 million over the same period in 2019. During the first three quarters, revenue declined 59% to 71.7 million euros, while expenditure was down 43.5% due to fewer flight operations. The carrier’s losses widened, and passenger numbers declined during the first nine months of 2020 as a result of the coronavirus Covid-19 pandemic, which began in March. Croatia Airlines was one of the few carriers in the region to maintain services during global lockdowns by maintaining a daily rotation between Zagreb and Frankfurt between April 5 and June 11. 

Despite maintaining some operations over the spring, Croatia Airlines cancelled 12.859 flights during the Q1 – Q3 period, some 54% of its planned schedule. Over the same period, it offered 1.369.690 seats for sale. The greatest number of flight cancellations were in April, May and June. In August a high of sixty daily flights were operated, while in September, when Croatia started seeing a resurgence in virus cases and the introduction of stricter entry requirements for its citizens, an average of 46 flights were conducted. In total, Croatia Airlines operated 10.526 flights during the January - September period. The utilisation of its Dash 8 turboprop fleet has been significantly higher than its Airbus fleet so far this year, due to its lower capacity and associated costs. 

During the first three quarters, Croatia Airlines handled 533.381 passengers, representing a decrease of 68.7%, or 1.168.190 travellers, on the same period in 2019. Of those, 142.958 passengers were carried on domestic flights, down 64%, while 384.712 travellers flew on international services, a decline of 69%. The remaining 5.711 passengers were carried on charter flights, down 91% year-on-year. However, charters accounted for only 1% of overall traffic. The average cabin load factor stood at 50.7%, down 23.1 points. Loads were softer on international flights by 22.9 points for an average of 51.1%, while on domestic services they were down 18.6 points to 50.5%. The Croatian carrier previously estimated its passenger numbers would decline some 60% in 2020, while its annual losses would amount to thirty million euros. At this point, both targets are unlikely to be reached.

Comments

  1. Anonymous09:15

    The loss isn't too bad considering the situation.

    ReplyDelete
    Replies
    1. Anonymous10:28

      Considering they had a loss of 26 million in 2009 when there was no deadly pandemic, it really isn't that bad.

      Delete
    2. Anonymous12:13

      Don't forget it includes 2.5 months of normal operations before Corona started. Expect around €50 million loss at least by the end of the year.

      Delete
    3. Anonymous13:52

      "The Croatian Chamber of Economy now estimates Croatia Airlines will register a 52.5 million euro net loss this year, while it predicts losses during the first half of 2021 will amount to 25 million euros. "

      https://www.exyuaviation.com/2020/10/croatia-airlines-seeks-model-for-state.html

      Delete
    4. Anonymous13:55

      That seems realistic.

      Delete
    5. Anonymous21:01

      It will be huge loss

      Delete
  2. Anonymous09:15

    It doesn't look likely OU will reach million passengers this year.

    ReplyDelete
  3. Anonymous09:17

    Expected

    ReplyDelete
  4. Anonymous09:19

    Not looking good, especially since there are big losses in last quarter even at the best of times.

    ReplyDelete
    Replies
    1. Anonymous09:30

      Yes, and the third quarter is when most money is supposed to be made. So this is probably the best quarter they had.

      Delete
  5. Anonymous09:28

    Nothing better could be expected in these times.

    ReplyDelete
  6. Anonymous09:29

    Dang that's a lot of money.

    ReplyDelete
  7. Anonymous09:29

    The government will cover the losses.

    ReplyDelete
    Replies
    1. Anonymous09:37

      Hope they get state aid soon

      Delete
    2. Anonymous21:01

      They got already 33 million EUR before pandemic

      Delete
  8. Anonymous09:35

    Loss will probably be 50+ million by the end of the year.

    ReplyDelete
  9. Anonymous09:38

    This is terrible.

    ReplyDelete
    Replies
    1. Anonymous09:39

      It's depressing.

      Delete
  10. Anonymous09:39

    They should do more with their maintenance division.

    ReplyDelete
    Replies
    1. Anonymous09:43

      Such as?

      Delete
    2. Anonymous09:45

      Try and get more customers.

      Delete
    3. Anonymous15:54

      A large amount of aircraft in Europe are either stored (requiring very little maintenance) or flying a lot less, which means (calendar) time between time-limited checks will increase, so there is less business for aircraft maintenance as well.

      Delete
  11. Anonymous09:43

    LF really low. Understandable of course.

    ReplyDelete
    Replies
    1. Anonymous09:44

      Imagine if they didn't deploy the Q400 more across their network.

      Delete
    2. Anonymous10:25

      Shows they made the right decision.

      Delete
  12. Anonymous09:52

    :(

    ReplyDelete
  13. Anonymous10:16

    Could have been worse.

    ReplyDelete
    Replies
    1. Anonymous10:24

      Things will get worss unfortunately.

      Delete
  14. Anonymous10:21

    Wonder what their best performing route is.

    ReplyDelete
    Replies
    1. Anonymous10:24

      FRA no doubt.

      Delete
    2. Anonymous11:33

      Not so sure how it will perform now with Germany in lock down

      Delete
    3. Anonymous13:18

      ^ Unfortunately this year is dead.

      Delete
  15. Anonymous11:33

    Disaster

    ReplyDelete
  16. "offered 1.369.690 seats for sale"
    "handled 533.381 passengers"
    "The average cabin load factor stood at 50.7%"
    Am i wrong or this is not good math?

    ReplyDelete
    Replies
    1. Anonymous12:00

      It offered seats but many flights were cancelled so not calculated into final LF.

      Delete
  17. Anonymous13:18

    Well one metric that probably improved is their market share in Croatia.

    ReplyDelete
    Replies
    1. Anonymous13:48

      Another one that improved was decline in expenses.

      Delete
    2. Anonymous13:51

      Both of the things you are mentioning did not come naturally or organically but because of the corona situation.

      Delete
  18. Anonymous13:42

    Situation is bad, just look at today's list of departures from ZAG. There are only 16 departures, even LH cancelled its flight this morning (last night). I can't remember if there was ever a time in independent Croatia that there was a day in October without at least one LH flight. :(

    ReplyDelete
    Replies
    1. Anonymous14:45

      Really crazy and sad times.

      Delete
    2. Anonymous18:05

      Want to see bad? Check LJU, 2 departures today :D.

      Delete
    3. Anonymous20:32

      Wow! I didn't know it was that bad. Which two was it?

      Delete
    4. Anonymous21:03

      ZAG and LJU could have never been compared

      Delete
  19. Anonymous14:45

    Nice at least that they report their results.

    ReplyDelete
    Replies
    1. Anonymous14:56

      Unlike Austrian Airlines!

      Delete
    2. Anonymous15:52

      OS is wholly owned by LH. Have a look at the Lufthansa financial reports, if you want to see how well OS is doing.

      Delete
    3. Anonymous16:24

      For this 2019. they reported 15 mil. € profit before taxation.

      Delete
    4. Anonymous16:54

      There is a reason why they are not reporting their result after taxation. ;)

      Probably around €15 million in the red. There is a reason why LH Group isn't getting them new long-haul planes.

      Delete
    5. Anonymous19:01

      It would nice to have detailed results like this for every ex-Yu airline.

      Delete
  20. Anonymous14:57

    Results won't be any better in the fourth quarter.

    ReplyDelete
    Replies
    1. Anonymous18:37

      Everyone is in the same boat.

      Delete
    2. Anonymous18:40

      Unless you're a Chinese airline...

      Delete
    3. Anonymous18:58

      Why?

      Delete
    4. Anonymous19:01

      Their domestic flight market has completely recovered and is now at the same level as 2019, while even their international flight market has decreased less than the European average.

      Delete
    5. Anonymous19:28

      Interesting

      Delete
    6. Anonymous20:59

      So not the same boat

      Delete
  21. Anonymous16:49

    let the market will take care of it

    ReplyDelete
  22. Anonymous18:34

    The on thing I applaud them for is flying during the lockdowns, ie at least keeping one scheduled route going.

    ReplyDelete
  23. Anonymous18:37

    All of the world's airlines are posting financial losses so the figures mentioned aren't surprising.

    ReplyDelete
  24. Anonymous18:42

    Good luck OU! I hope they get out of this stronger and the government has a more clearer vision of what it can do.

    ReplyDelete
  25. Anonymous19:03

    Financial figures are very poor this year but we can't blame them for it.

    ReplyDelete
    Replies
    1. Anonymous21:04

      They had loss when Croatian tourism was booming.

      Delete
  26. Anonymous21:00

    Ouch

    ReplyDelete
  27. Anonymous07:13

    Rest In Peace Croatia Airlines. t was good to know you but good bye for now

    ReplyDelete

Post a comment

EX-YU Aviation News does not tolerate insults, excessive swearing, racist, homophobic or any other chauvinist remarks or provocative posts with the intention of creating further arguments. A full list of comment guidelines can be found here. Thank you for your cooperation.