Higher fuel prices lead to €15.2 million loss at Croatia Airlines


Croatia Airlines has seen its losses widen to 15.2 million euros during the first quarter of the year despite increased revenue, with the carrier blaming higher fuel prices for its lacklustre performance. It represents the airline’s worst first quarter financial result in at least eight years. The loss increased 19% compared to the same period in 2021, while costs soared 61%. Revenue grew 85% on last year but is still down 25% on the pre-pandemic 2019. “Considerable positive steps have been made compared to the first quarter of 2021, however, the increase in fuel prices significantly effects operating costs and the amount of cash outflow. The continuation of the war in Ukraine and the unpredictable nature of the pandemic continue to have a major impact on demand and, consequently, on income”, Croatia Airlines said. It added, “All of these may again raise questions about maintaining liquidity. The company is taking all necessary measures to actively manage liquidity and optimise the business. It continues to implement rigorous cost cutting measures, which is in line with the Croatia Airlines’ post-Covid strategy”.

During the first three months of the year, Croatia Airlines operated 4.149 flights, while sales were three times higher on the same period in 2021. Existing bookings between May and October show a notable recovery and are 2.3 times higher than last year, but still down 54% on the record breaking 2019. “Croatia Airlines has gradually increased its frequencies and renewed certain routes. Passenger behaviour in terms of bookings has changed significantly compared to the pre-pandemic years, with late bookings prevailing during the crisis and such trends continuing in 2022”, the carrier noted. Overall, Croatia Airlines had 939 employees by the end of March of this year.

Croatia Airlines handled 200.721 travellers during the first quarter of the year, up a notable 177.8% on 2021. It added 96.861 passengers. However, the figure is still down 42% on 2019. The carrier welcomed 56.428 travellers on its domestic services, up 122%, while 142.149 passengers flew on international flights, representing an increase of 214%. The remaining 2.144 customers were handled on charter flights, up 36%, although charters accounted for just 1% of total traffic. The airline noted that these operational results were better than anticipated. The carrier’s average cabin load factor stood at 51.4% which is up by 6.6 points on 2021. On domestic services, the figure stood at 49%, An improvement of 13.8 points, while the average load factor on international flights amounted to 51.9%, up 2.2 points. Overall, the airline increased capacity on its international operations by 194% compared to the first quarter of 2021.



Comments

  1. Anonymous09:01

    Neat excuse

    ReplyDelete
    Replies
    1. Anonymous15:09

      The record year 2019 is a myth... It also ended with substantial losses... Does anyone remember the excuse back then?

      Delete
    2. Anonymous01:07

      It is referring to record year in terms of passenger numbers not financial result.

      Delete
    3. Anonymous16:01

      Obviosly this result can never be achieved again... The reason is simple... The fleet is of the same size, BUT with ever deterioratng reliability and associated costs the same number of rotations in 24 hours cannot be operated

      Delete
  2. Anonymous09:03

    the average load factor on international flights amounted to 51.9%

    This has to be the worst part of the story. How is this even possible? And don't mention covid, as they are quite capable of canceling the flights if they are not preforming (osjek)

    ReplyDelete
    Replies
    1. Anonymous09:08

      Yes, OU traditionally has a very low average cabin load factor although it improved in the last few years leading up to Covid to around 75%.

      Delete
    2. Anonymous09:09

      This is sad

      Delete
    3. Anonymous09:12

      Do we know LFs of other airlines?

      Delete
    4. Anonymous09:16

      I think JU was 66% if I am not wrong.

      Delete
    5. Anonymous15:11

      The passenger load factor has nothing to do with earning any money.

      Delete
  3. Anonymous09:05

    This financial result is worse than in Q1 2020 when Covid hit!

    ReplyDelete
    Replies
    1. Anonymous09:09

      It is the worst in many years.

      Delete
  4. Anonymous09:09

    What's going to happen with OU this year?? Not sure government will be allowed to give more funds

    ReplyDelete
    Replies
    1. Anonymous09:16

      I think the government will find ways to pump money.

      Delete
    2. Anonymous09:19

      Yes but the economy isn't performing that well and losses are becoming worse and worse. Every year the loss gets wider. Also now with FR there isn't so much need for OU. Even LH is reducing ZAG-MUC and shifting more flights to OU? Why would they do that if they were making enough money?

      Delete
    3. Anonymous15:14

      It's the airplanes that are the problem... When the new ones come, all will be well. Especially for those signing the deal and the criminal clique below them...

      Delete
  5. Anonymous09:13

    Sad

    ReplyDelete
  6. Anonymous09:13

    Even if we take in consideration all the circumstances this is terrible result

    ReplyDelete
  7. Anonymous09:13

    It's the final countdown

    ReplyDelete
  8. Anonymous09:15

    The problem I belive is they are not taking this airline as business as it is but as an national thing. Profit>routes

    ReplyDelete
    Replies
    1. Anonymous09:45

      That has been the issue from the start.

      Delete
  9. Hahahahahahahaha, what a good morning laugh 😃 Fuel prices, yeah right, what a pathetic excuse for all the crime, corruption, inertness, incompetence, obedience to Mafia and politicians, nepotism.....

    ReplyDelete
    Replies
    1. Anonymous09:18

      Well it's easier to blame it on others (fuel) rather than their own incompetence.

      Delete
    2. Anonymous09:18

      Pozdrav iz rijeke takođe vama. Zasto so ovi glumaci kod Zagreba tako skorumpirani.

      Delete
    3. Anonymous09:30

      Nonsense excuse. Airlines usually hedge their fuel costs. The current oil price should not reflect Q1 results.

      Delete
    4. Anonymous09:49

      I love reading their reports to see who they will blame for their poor performance besides themselves, of course.

      Delete
    5. Anonymous04:27

      OU management reading this blog are currently googling the definition of 'hedge'.

      Delete
  10. Anonymous09:16

    Anyone knows the accumulated losses OU made in the past 3 years?

    ReplyDelete
    Replies
    1. Anonymous09:19

      Around 69 milion $

      Delete
    2. Anonymous09:27

      Ann 9:19 Nice

      Delete
    3. Anonymous09:28

      So this year we might hit the €100 million mark. Congratulations to OU.

      Delete
  11. Anonymous09:17

    Not surprising but using fuel prices as an excuse... Doesn't OU hedge any of its supplies?

    ReplyDelete
    Replies
    1. Anonymous09:22

      Not that smart.

      Delete
    2. Anonymous10:31

      Not many airlines are experienced in using financial instruments to hedge the fuel cost. To give you an example, Ryanair is said to be in the best position this year regarding the fuel prices as they have 80% of their fuel for the next 12 months hedged. This ratio is believed to be around 20% for Wizzair.

      And I don't think any ex-yu airline hedges itself against the fuel price.

      Delete
    3. Anonymous11:12

      Interesting info. You are probably right. I doubt any of the ex-Yu airlines do fuel hedging.

      Delete
    4. Anonymous17:09

      To add, Ryanair is also hedged with as low as $630/mt according to a Reuters article. Last week the market price for jet fuel was around $1200.

      So, to put it in simple terms, Ryanair is paying only about half of the market price for most of their fuel requirements this year.

      Delete
    5. Anonymous15:17

      They also insist on paying at least the list price for anything the buy. Provisions are payed in percentage. Since the taxpayer takes the bill in the end... Who cares.

      Delete
  12. Anonymous09:25

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

    ReplyDelete
    Replies
    1. Anonymous09:25

      Your hopes are too high.

      Delete
  13. Anonymous09:25

    Unbelievable :(

    ReplyDelete
  14. “Higher fuel prices” aka Ryanair?

    ReplyDelete
    Replies
    1. Anonymous09:29

      Absolutely, they can't officially say it's because of them because then it will show that they can't compete against them. That's something we all know to be true anyway.

      Delete
  15. Anonymous09:27

    Not looking good

    ReplyDelete
  16. Anonymous09:32

    I was expecting a loss but not this big. I thought things would slowly improve this previous quarter.

    ReplyDelete
  17. Anonymous09:33

    At least the passenger numbers are improving. 200,000+ isn't that bad for OU during first quarter.

    ReplyDelete
  18. Anonymous09:40

    Not a bad result considering the high fuel prices!

    ReplyDelete
  19. Anonymous09:40

    It's depressing.

    ReplyDelete
  20. Anonymous09:40

    LF really low.

    ReplyDelete
  21. Anonymous09:41

    Wonder what their best performing route is.

    ReplyDelete
    Replies
    1. Anonymous09:50

      OSI-ZAG in cooperation with Trade Air.

      Delete
    2. Anonymous09:50

      Haha

      Delete
    3. Anonymous11:16

      Probably Frankfurt.

      Delete
    4. Anonymous20:10

      In winter none of them make money, at least that's what Kucko claimed.

      Delete
  22. Anonymous09:41

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

    ReplyDelete
    Replies
    1. Anonymous10:04

      True unfortunately.

      Delete
  23. Anonymous09:45

    If it's any consolation, Finnair lost 132.9 million euros in the first quarter.

    ReplyDelete
    Replies
    1. Anonymous10:04

      Incomparable considering that Finnair is directly affected by war in Ukraine and is a much larger airline.

      Delete
    2. Anonymous11:17

      How did LH group airlines perform in Q1?

      Delete
    3. Anonymous01:23

      Lufthansa Group will publish their Q1 results on 5th of May.

      Delete
  24. Anonymous09:48

    the figures mentioned aren't surprising.

    ReplyDelete
  25. Anonymous09:49

    For Q2 they will blame early Ramadan.

    ReplyDelete
  26. Anonymous09:50

    Love them or hate them, I do appreciate that they publish such detailed reports.

    ReplyDelete
  27. Anonymous09:50

    How many employees would be optimal for OU?

    ReplyDelete
    Replies
    1. Anonymous10:00

      Based on their operations, not more than 700

      Delete
  28. Anonymous09:55

    An Airline with state subsidies and prioritized among competition, in a touristy country, to come up with such statistics and blame it on fuel price is just sad.

    ReplyDelete
    Replies
    1. Anonymous10:00

      +1

      Delete
    2. You forgot just few "small" things : 4 million diaspora on all continents, ideal geographical position with the entire Balkans and the near East "behind", as source of passengers and cargo, all possible EU deals and open sky agreements where you basically can fly anything you want as much as you want, and labour cheaper compared to the northwest. They have ideal conditions to be the size at least Austrian and earn money at least Trade Air. Why they are not and do not, I wrote at least hundred times

      Delete
    3. Anonymous11:28

      Indeed. I don't know it all because im not Croatian, but from an objective perspective, Croatian Airline has all ingredients to be at least a self sustaining entity.
      I wouldn't go as far as compare it with Austrian. The latter got 800mln subsidies last year and would have received double even if it meant sustaining the cargo transport alone.

      Delete
  29. Anonymous10:00

    This is bad. The winter loss is getting bigger to the point that summer profits can no longer cover it.

    ReplyDelete
  30. Anonymous10:05

    The impeccable results of the money thrown at BCG for post Covid strategy. Just more money wasted like the numerous privatization advisors they had in the last 5 years.

    ReplyDelete
    Replies
    1. I was saying from the day one BCG was there to split money only, and got spit at by Uhljebs, fan boys and Party bots

      Delete
    2. Anonymous18:04

      BCG is not the only one. In 2020 they hired another external advisor to write a document on how they should use state aid

      Delete
    3. Pola pije pola Sarcu daje. Bilo bi smijesno da nije tuzno

      Delete
  31. Anonymous11:13

    Well let's see how they go in the second and third quarters. That's when they make the most money.

    ReplyDelete
    Replies
    1. Anonymous11:15

      There has to be a plus after quarters 2 and 3 but especially after number 3. If result after third quarter is negative then it's another loss making year.

      Delete
    2. Anonymous11:16

      There is no chance they will make a profit this year. You don't have to wait for the quarters.

      Delete
    3. Anonymous21:08

      In the third quarter we will see the result of their shift to Split.

      Delete
  32. Anonymous11:13

    The load factor is quite worrying.

    ReplyDelete
  33. Anonymous11:14

    I don't see a solution for this company especially since Bajic is staying on board as CEO for another several years, which means the same management team, which means the same issues and same losses.

    ReplyDelete
  34. Anonymous11:17

    With only 12 aircraft, almost 1,000 employees seems excessive. That is what drives their costs up.

    ReplyDelete
  35. Anonymous12:05

    I'm getting sick of my tax money going to this bottomless pit.

    ReplyDelete
    Replies
    1. Anonymous21:24

      It's worth every penny of taxpayers money. I don't like Ryanair stealing my taxes.

      Delete
    2. Short quiz for ex-yu audience :
      Anonymous 21.24 is :
      1. Uhljeb
      2. Party bot
      3. Limited fanboy
      The winner is getting free membership for ADEZE

      Delete
    3. Anonymous08:46

      All of the above.

      Delete
  36. Anonymous14:17

    I treba da propadnu kad se prave pametni

    ReplyDelete
  37. Anonymous18:02

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

    ReplyDelete
  38. Anonymous18:05

    Dismiss the management!!

    ReplyDelete
    Replies
    1. Anonymous18:06

      They just elected current CEO for full term after temporary posting 9 times.

      Delete
    2. Anonymous01:22

      His term as CEO will begin on May 6 and runs until 2027.

      https://www.exyuaviation.com/2022/03/croatia-airlines-gets-full-term-ceo.htm

      Delete
  39. Anonymous18:05

    They need to operate more charters.

    ReplyDelete
    Replies
    1. Anonymous19:56

      In winter?

      Delete
    2. Anonymous01:20

      In winter and summer.

      Delete
  40. Anonymous19:16

    I thought Star Alliance membership is beneficial for OU and the then demised JP.
    OU should really put its acts together if it wants to resist FR and maybe W6 "attacks". Those 2 are now very experienced and know what to do to have a larger market share.......

    ReplyDelete
  41. So they're saving the inflation excuse for Q2? 🤣

    ReplyDelete
    Replies
    1. Anonymous19:56

      I would not be surprised at all haha

      Delete
    2. Anonymous16:03

      Oh Libertas, that's absolutely great..
      Good one

      Delete
  42. Anonymous20:09

    LH will always be there to help OU.

    ReplyDelete
    Replies
    1. Anonymous21:06

      I'm not sure if this comment is ironic or delusional.

      Delete
    2. Anonymous16:06

      With such friends who needs enemies

      Delete
  43. Anonymous21:06

    Can someone predict what are realistic and possible outcomes for OU? Please exclude privatization as I don't think that's going to happen.

    ReplyDelete
    Replies
    1. Anonymous23:41

      Bankruptcy.

      Delete
    2. Anonymous23:55

      I've lost all hope for them

      Delete
  44. Anonymous23:56

    I really thought that they would renew their fleet like they announced, launch new routes, have a new strategy... in the end they never had worse results.

    ReplyDelete
  45. Anonymous01:17

    Croatia Airlines Fail

    ReplyDelete
    Replies
    1. How dare you? It's Bravo Hrvatska! Always! And Bravo ADEZE! Even more always! No matter how completely f.cked up we are

      Delete
  46. Anonymous01:19

    At least they didn't take out any new loans in Q1.

    ReplyDelete
    Replies
    1. Anonymous16:04

      If one wants to take a loan you need collateral.
      They got nothing.

      Delete

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