Croatia Airlines registers €12.9 million loss in Q1


Croatia Airlines has seen its losses narrow to 12.9 million euros during the first quarter of the year, down from 14.6 million over the same period in 2020. The figure is also an improvement on the pre-pandemic 2019, when it registered a 13.3 million euro loss during the first quarter. Revenues were slashed by 54.4% to 15.1 million euros in the January - March period, from 32.7 million a year earlier, while expenditure was down from 47.2 million to 27.9 million euros, primarily because of the decreased volume of flight operations. At the end of the quarter, Croatia Airlines had 949 employees, down from 1.037 during Q1 2020.

The Croatian carrier had a high level of liquidity by the end of March this year due to state aid, a government equity loan and state recapitalisation which was carried out towards the end of 2020. However, the airline warned it may soon face liquidity issues again. “The company is facing decreased demand for travel and ticket sales. Therefore, the question of liquidity may arise again in the coming period, especially when we take into account the uncertainty over the duration of this crisis. The company is undertaking all measures to actively monitor liquidity, as well as optimise its business. As a result, we continue with the implementation of rigorous cost saving measures”, the airline said.

Croatia Airlines has registered an 89% decline in bookings during the first quarter, while passenger numbers were down 73% to 72.263. At the start of the year, Croatia Airlines employed an external consultant, BDO Savjetovanje, to draft a document entitled “Analysis of the intended use of state aid and savings made since the start of the Covid-19 pandemic”, which covered all aspects of the austerity measures undertaken by the carrier. The document also includes a savings plan for 2021. Croatia Airlines recently said it had begun work on a “Post Covid Strategy” and was also seeking an external advisor to work alongside it in creating the document.


Comments

  1. Anonymous09:01

    I honestly don't understand why they need an external advisor to write a document on how they are using state aid, and then another on what their strategy will be after Covid.

    ReplyDelete
    Replies
    1. JU520 BEGLAX09:08

      + 1000

      Delete
    2. Anonymous09:51

      So someone can get money.

      Delete
    3. Anonymous15:15

      This seems totally senseless to me too. Can't the airline itself write how they are using the aid and what they will do after the pandemic? Why do you need an external entity to do it for you???

      Delete
    4. Anonymous15:39

      You are obviously not from Croatia but the government here loves paying their experts for nothing because they are usually their friends, lovers, family...

      Delete
  2. Anonymous09:04

    "The company is facing decreased demand for travel and ticket sales. Therefore, the question of liquidity may arise again in the coming period,"

    Sounds to me like they will ask for more state aid.

    ReplyDelete
    Replies
    1. Anonymous09:07

      Well for starters they will feel the non-stop flights from JFK to DBV. There will be less and less need for transfers and now US carriers will handle most transfers from teh US going to DBV.

      Delete
    2. Anonymous15:12

      There will definitely be more requests for aid. The question is will the government be able to provide it.

      Delete
  3. Anonymous09:05

    The loss is not that huge, all things considered.

    ReplyDelete
    Replies
    1. Anonymous15:12

      Considering they had a bigger loss when there was no deadly pandemic, it really isn't that bad.

      Delete
    2. Anonymous20:17

      That's not good news though. This means that there is a positive relationship between the level of operations and the financial loss. Meaning that the loss will increase if they fly more. A healthy airline should be able to reduce its losses by increasing their operations.

      Delete
  4. Anonymous09:05

    So they are losing money by flying less, that is while doing less of what their main purpose is?

    Cringe.

    ReplyDelete
    Replies
    1. Anonymous09:52

      Everyone is loosing money and flying less.

      Delete
    2. Anonymous10:13

      Yes but OU's results are better now when they are flying less than before covid!

      Delete
    3. Anonymous10:16

      So they should not fly at all to be on positive zero :-)

      Delete
    4. Anonymous10:37

      Unfortunately I think that's what's going to happen before spring 2022. I don't think they can survive a post-covid winter with FR in town. They already reduced BRU from 1.400/1.600 HRK to just 860.

      Delete
    5. Anonymous15:15

      The government will cover the losses.

      Delete
    6. Anonymous15:40

      Like they did for CY or MA?

      Delete
    7. Anonymous15:53

      Hahahaha

      Delete
    8. Anonymous16:45

      I think we are seeing the end of OU as we knew it until now. Now comes the end, long and painful like for JP. FR will put an end to them.

      Delete
    9. Anonymous17:03

      OU is like that out of control Chinese rocket, heading for the fiery crash. No one knows exactly how long before that happens but now it's certain it will happen soon.

      Delete
    10. Anonymous21:59

      I think it will happen somewhere either in November or February when demand absolutely crashes.

      Delete
  5. Anonymous09:19

    At least they decreased the number of employees.

    ReplyDelete
    Replies
    1. Anonymous15:13

      They got rid of people that had contract for a certain period of time. And seasonal workers.

      Delete
  6. Anonymous09:22

    I see they reduced ZAG-BRU fares by some 40% on the days FR is supposed to fly. I expect their finances to get much worse over the summer.

    ReplyDelete
    Replies
    1. Anonymous09:52

      It's going to be tough against FR, especially in winter when revenue is generwlly down for them.

      Delete
  7. Anonymous09:26

    The question is, would there be a loss if there was no corona?

    ReplyDelete
    Replies
    1. Anonymous09:27

      Of course as there were losses before corona too.

      Delete
    2. Anonymous09:54

      Yes but the question is by how much.

      Delete
    3. Anonymous10:14

      Probably a few million more since now they are flying less and losing less. Without corona they would have more staff and more loss making routes.

      Delete
  8. Anonymous09:26

    Let's hope there is a strong recovery in Q3 and Q4.

    ReplyDelete
    Replies
    1. Anonymous09:27

      I wouldn't hold my breath. Not just OU but any airline for that matter.

      Delete
  9. Anonymous09:27

    The Q1 results are very good considering the circumstances.

    ReplyDelete
  10. Anonymous09:28

    OU will have to adopt a completely different approach and strategy to their operations once things stabilize with the pandemic if they want to survive.

    ReplyDelete
    Replies
    1. Anonymous13:09

      Such as?

      Delete
    2. Anonymous00:11

      Such as - renegotiate lease contracts, fire uhljebs, start real hub model with real connection possibilities from region (night wave to region, overnight, early morning flight from region to Zagreb), focus on your own niche (like AS found Russia), use more summer tourist potential for Croatian coast and winter potential for region), cut umbilical cord to mutti and grow some cojones for God sake!

      Delete
    3. Anonymous02:42

      While they are thinking they are losing ground. KLM just announced DBV flights. This will be a big hit for them since they had many transfers to AMS.

      Delete
  11. remember my words 2021 for that is their last year

    ReplyDelete
  12. Anonymous11:02

    They have just 11 flights today from which...

    ...six are PSO
    ...three are to FRA
    ...two are to AMS and ZRH

    So outside PSO routes only AMS is not to LH Group hub. Then they wonder why ZAG made a deal with FR.

    ReplyDelete
    Replies
    1. Anonymous15:16

      Situation is bad

      Delete
    2. Anonymous21:47

      Wow 3 flights to Frankfurt!

      Delete
  13. Anonymous12:20

    Where is Pozdrav iz Rijeke today ? ... this is his favorite topic for debate!

    ReplyDelete
    Replies
    1. Anonymous13:00

      If only we knew what his thoughts on this subject were. ;-)

      Delete
    2. I am here. And this is not my favorite topic. It is well known fact that OU is loss making insignificant feeder full of uninterested uhljebs and led by inert and incompetent people placed there by even more incompetent politicians in order to make profit for foreign Master by criminal acts and other similar actions. So what should I comment and debate about?

      Delete
    3. Anonymous15:02

      Now that was one long sentence and you didn't mention long haul once.

      Delete
    4. Anonymous11:40

      Uhljebs should also be happy because Aegean suspended ATH-ZAG over the summer. All flights are sold via BEG on JU. Now OU will have a bit of an easier time.

      Delete
  14. Anonymous13:09

    Good luck OU and I hope the management does the right thing and finances improve.

    ReplyDelete
  15. Anonymous13:09

    What is the passenger yield, based on revenue passenger kilometers?

    ReplyDelete
  16. Anonymous13:10

    :(

    ReplyDelete
  17. Anonymous15:07

    Yes the loss is big but it is not as bad as I thought it would be if you take into consideration Croatia Airlines was producing losses well before this crisis.

    ReplyDelete
    Replies
    1. Anonymous15:08

      True considering LX had 201Mil. OS 100 Mil. loss in Q1.

      Delete
    2. Anonymous15:10

      You can't compare the size and structure of Swiss and Austrian with Croatia Airlines.

      Delete
  18. Anonymous15:07

    Expected

    ReplyDelete
  19. Anonymous15:14

    Nothing better could be expected in these times.

    ReplyDelete
    Replies
    1. Anonymous19:09

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

      Delete
    2. Anonymous21:46

      Actually airlines in the US and China are now posting profits for the first quarter.

      Delete
  20. It seems they make less loss when they fly less passengers.

    ReplyDelete
    Replies
    1. Anonymous19:08

      This demonstrates that not all is well at the company. Because in addition to fixed costs you are producing greater losses by actually carrying passengers.

      Delete
  21. For more than a decade the gross mismanagement of OU has been legendary. Tens of thousands go from Split to Dubrovnik and back every summer and where are OU flights. Ditto from Split to Zagreb and back but OU continues abysmal before 7AM flight from Split to Zagreb and that's it until the afternoon. Just following what successful buses do will.make a difference. It's not just the destination. The Boston to NYC shuttle, hourly, is an example to follow. Imagine getting up.at 8 am.and taking 40 minutes to get to the airport and another 45 for the flight to get a civilized 925 flight to Zagreb? Why not 3 morning and 3 afternoon and 3 evening flights in season from Split to Zagreb. Split to Dubrovnik. Dubrovnik to Split?

    ReplyDelete
  22. Anonymous19:07

    Nice at least that they report their results.

    ReplyDelete
    Replies
    1. Anonymous21:46

      +1
      unlike others.

      Delete
  23. Anonymous19:22

    Reading about Croatia Airlines and its failures is my nearly daily dose of masochism ...

    ReplyDelete
    Replies
    1. Anonymous21:45

      hopefully things get better...

      Delete

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