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.