Croatia Airlines recorded a net loss of 19.6 million euros in 2024, marking its worst financial performance in three years. The figure is in contrast to 2023’s profit of two million euros. Although the carrier’s financial performance improved compared to the pandemic-inflicted 2020 and 2021, its loss was higher than during the pre-pandemic 2019, as well as 2022, which was still impacted by global travel restrictions. The loss was primarily due to increased operational expenses which surged by 9% to 271.1 million euros, compounded by the costs associated with the delayed arrival of its first two Airbus A220-300 aircraft, as well as short-term aircraft leases and increased maintenance demands. These expenses overshadowed the 6% increase in passenger revenue, which rose to 220.7 million euros, driven by higher passenger volumes but insufficient to offset the overall rising costs, including those from a new collective bargaining agreement which pushed up employee wages.
Croatia Airlines' liabilities from three shareholder loans amounted to 78.8 million euros as of December 31, 2024. The company’s cash position at the end of the year stood at 44.8 million euros, down from 79.1 million euros in 2023, reflecting substantial investment outlays and considerable expenses for its transition towards an all-A220 fleet. The airline noted it faced increased operational risks in 2024 including disruptions in supply chains and availability of spare parts, impacting aircraft maintenance schedules and delaying new aircraft deliveries. Furthermore, regulatory costs rose due to compliance with passenger rights regulations, regional environmental initiatives and accessibility requirements.
The Croatian flag carrier handled 1.838.609 passengers in 2024, representing an increase of 6.1% on 2023. However, the figure is still down 15.2% on the pre-pandemic 2019. The airline’s average annual cabin load factor stood at 65.1%, slightly down on the 65.3% load the year before. In 2019, its average cabin occupancy rate stood at 73.5%. Croatia Airlines increased its number of flights by 1.8% year-on-year to 26.438, while uplifting 1.409 tons of cargo over the same period, down 7.5% on 2023.
Commenting on its performance in 2024, the airline said, “The fleet replacement investment cycle initiated in 2024 was marked by operational and financial challenges associated with the transitional period, and the company anticipated negative financial outcomes for this phase. These challenges and significant exposure to costs, arising from factors largely beyond the control of Croatia Airlines, impacted the company's business results for the year 2024”.
Bravo OU!
ReplyDeleteIt will easily be covered by Government. Dont hate.
DeleteYou need to make distinction between criticism and hate. People who criticize, based on facts, want to change things because they CARE and LOVE the subject of criticism. On the other hand, real haters are those who accept and support corruption and incompetence which lead to constant losses, drop in LF and disastrous market share, worse and worse year by year. Haters are also those who hail and appraise single type fleet which cements role of OU as feeder and which will, as we see after only two newly leased aircraft, further increase losses. Haters are also those who accept their flag carrier to be tiny irrelevant feeder and not take advantage of potentials of its country and market, and who accept such tiny irrelevant feeder to make losses which will be cover not by government but by PEOPLE who finance and provide for funds only distributer by government. Such people are real haters, and not those speaking loudly of the catastrophy called Croatia Airlines
Delete1210, the loss you all talk about os covered by VAT from supermarket turnover one weekend a year. Actually, more like one Saturday. Off season.
DeleteIf your subject of interest are supermarkets 14.00 go to the ex-yu supermarkets blog and discuss it there. I am discussing aviation here and almost ALL european airlines which are post-covid profitable, with exception of OU. I am discussing all european airlines having bigger LF than OU. I am discussing all european airlines having professional management with exception of OU which has politically appointed aparatchiks. As you obviously don't understand what I am talking about, you are more than welcome, as already said, and to write on ex-yu supermarkets. In season and off season.
DeleteAnon 12:10, OU is doing everything it can to be profitable entity. New type in the fleet, old unreliable that are leaving fleet, turbo-prop that is not suitable for OU operations and high seasonality of Croatian market has made huge problems for OU. Not to mention Ryanair expansion at ZAG, their aggressive ticket prices that have eaten yields at Zagreb. But next year with more a220's in feet, a220-100 for slimmer routes will make Croatia Airlines market leader in profitability!
DeleteOU is doing NOTHING to be profitable because it's not run by professionals. It's run by uhljebs and aparatchiks, who executed political decision of A220 which will change things but to worse, for enormously high lease rates compared to Airbus fleet which was owned and lower LF and higher operational costs compared to Dash fleet. And it is so obvious who you are and why are you here. Another greetings to Središnjica. Enjoy your last months.
DeleteCroatia Airlines management has more then lifted above its weight for Croatia. 36 years of experience, professionalism and safe travel has made directly billions of Euros for Croatian economy. Attack on Croatia Airlines as much as you want, but no airline has done more for this country. Direct profitability is not equal to economic stimulus that is Croatia Airlines directly to Croatian economy. Maybe airline will be gone one day and you will be happy, but expect Slovenian and Macedonian scenario where foreigner will not fly without hefty governmental subsidies. Market is extremely seasonal and yes during summer everyone is happy, but outside of the season if not to Croatian Airlines you will pay anyway to foreigners to fly off season because during that time profitability is not possible. Ryanair would never fly from Zagreb if there wasn't stimulus from the airport, and Ljubljana is struggling without Adria, Skoplje is playing high price for growth and you are just looking at single number of Croatia Airlines. Remember always look at wider picture if you want to make comment about something, plus the thousands of direct and indirect employees that will lose their job if Croatia Airlines is gone. Pozdrav za Središnjicu, samo vi radite vaš posao!
DeleteWider picture on national level is crime, corruption, partitocracy, dependent judiciary, last place in EU on most field, massive emigration of the most productive population and lower standard of most of the population day by day. Wider picture when OU is topic is hundreds of millions of taxpayers money pumped in, in exchange for humiliating 15 percent of market share, the lowest LF in Europe, and the only loss making carrier in Europe Lufthansa feeder, or existence solely in German interest, on expense of poor croatian people. Everything I write are facts, everything you write is Kradeze propaganda. I am done with this conversation and I leave others conclude who is genuine and sincere here, and who is paid to defend incompetence and corruption. The end.
DeleteThis above spat between Bajić and Pozdrav iz Rijeke has all the elements why OU is in banana. On one side desperate profesionals and clueless party idiots. The proclamation of self sacrifying managment, pissing blood for prosperity of OU is missing any reality check, any sense if decency. Totally MAGA stuff. How dare you writing about your “sacrifices”, when the only time you created anything than fat red numbers was when sales of assets generated marginally better income than operational loses. Everybody can understand that there are struggles here and there, but the fact, that you people are not sacked or even jailed, even when stealing millions of public money (yes, your minus is stealing), says everything. If corrupt and incompetent managment is left to steal and destroy without any consequence, it just emphesases the corruption and incompetence of the owners representatives. Croatian government in this case. Go away and post your heroic stories here when you will at least cut the loses (you incompetent useful idiots are not capable of making profit anyway)
DeletePozdrav is not a desperate professional. He is just wannabe Bajić.
DeleteAnon 16:11
DeleteBeside the fact that I just don't understand why the UE allows you to refinance the company at all, but let's say you are right about the economic impact of having an airline - although I haven't seen a single study proving it so far.
Let's say even that it assures the connectivity which would be lost without OU - are you sure on that? You are comparing Slovenia, Macedonia and Croatia, not exactly the same markets.
Let's say Ryan wouldn't fly many of the routes without subsidies - so instead of giving subsidies, we directly finance a loss making airline...
Let's say that all you are saying is right, I'll pose you just one simple question: €142,5mln of loss in 7 years, is it worth it?
Worse than I expected.
ReplyDeleteTo still be 15% below 2019 passenger numbers is a disaster.
ReplyDeleteThey still haven't reached passenger numbers from 2015!!
Delete^ and back then they were actually profitable.
Delete2023 and 24 HR tourism had record arrival of tourists. So not really understandable how OU still can be below 2019 figures. I hve no insights, but can imagine how things are running at their HDQ
DeleteAlmost 11€ loss per PAX.
ReplyDeleteSo just increase the cost of tickets by 11 euros.... problem solved!!
DeleteI see you are a business expert. LMAO
DeleteOr take from the employees...
DeleteHa ha ha ha ha ha ha ha
That's where they flex their atrophied muscles - in negotiations with pilots and cabin crew. Pathetic.
A few days ago some commenters went ballistic on me when I said that more efficient aircraft can't save a company with a 65% LF.
ReplyDeleteWho said that?
DeleteNo company with any type of aircraft in its fleet with only a 65%LF can make money.
Management should be sacked for incompetence, but let's be honest that's never going to happen in such a corrupt country
DeleteHow can a country which relies on tourism have a basket case of a national airline.
ReplyDeleteMany countries did and for a very long time.
DeleteLegacy Tap, Iberia, Alitalia, Air France for a very long time, Olympic, Cyprus, Airways, Air Malta, most of the airlines in the Caribbean, almost all North Africa airlines.
Croatia does not rely on tourism. Industrial production is bigger than tourism incone
DeleteAnd without tourism...
DeleteI don't see the connection. Croatia has considerable (seasonal) tourism to the coast and a national airline based in the capital, located inland.
DeleteIsn't it normally the case that foreign tourists fly in on foreign airlines? Spain is the biggest tourism country in Europe, but surely Iberia also only brings a small share of foreign tourists to Spain? Nor do many ski tourists to Innsbruck get there on Austrian Airlines, which is based in Vienna.
They could order tens of additional A220s like Air Baltic did and wait until LH buys a stake in the airline.
ReplyDeleteWhy should LH spend money buying when they have everything they want for free, with croatian tax payers paying instead?
DeleteTerrible result.
ReplyDeleteThey are not even trying!!
ReplyDeleteWhy would they when PM said last year "The existence of Croatia's national carrier will never be brought into question and the government will always support its flag carrier. This will continue in the future"
DeleteYou don't understand politic talk.
DeleteYou have to multiply everything with either 0 or -1
Eventually Croatia's diverse geography and heavy seasonalitity will force OU to the wall or force it really inovate. Having such a selection of airports along the coast means OU will always face very heavy competition in a price sensative market. I fear the future is a significantly reduced carrier as its clear they needed to plan their part in Croatia's expanding tourism 20 or even 25years ago when i first flew them (and they were a really good airline then). The airline needs a wake up call or it's future is looks poor at best.
ReplyDeleteIt's hard to see how they can sustain these losses without major restructuring or even bailouts.
ReplyDeleteAn extra Euro of tax on a packet of cigarettes would quickly cover €19m loss in Croatia
DeleteNot good, yet at the same time what would the alternative be?
ReplyDelete- The ADRIA scenario? - I would not choose that if I was the Croatian government.
So 20mil. is the subsidy that croatians pay for having better conectivity and own national airline.
We Croatians already pay million of euros in subsidies. The loss is ON TOP OF those subsidies, so Croatia Airlines costs us way more than 20 million euros.
DeleteOU costs you nothing! It is the Tourists who pay through all the various tourist taxes!
DeleteHahahahaha, good try 11.47, but people are not stupid. Pozdrav u Središnjicu
DeleteBravo Hrvatska!
ReplyDeleteIt is beyond me how this airline hasn't changed its management in years.
ReplyDeleteBecause the Govt does that, and they won't.
DeleteThere is nothing wrong with the current management. It was the previous CEO Kresimir Kucko who destroyed the Airline by selling off all of it's assets and cut the most profitable routes!
DeleteSure. So Jasmin Bajic was unable to introduce those profitable routes for the 6 years he has been CEO. In fact the new routes he is introducing this year run for a GRAND TOTAL OF 4 MONTHS.
Delete11.49
DeleteStop lying. It's obvious why you lie. Kučko was the only CEO not appointed by Kradeze. He had to make some unpopular moves but he had to clean the mess and debts Mišetić made. He filled low suites against ex management but "independent croatian judiciary" protected Mafia. The only period when OU did not receive money from the government was while Kucko was CEO. He completed restructuration and brought OU to profitability. And when company was ready to start with growth again, on healthy bases, Criminal Organization stole elections once again and placed its puppet Jasmin Bajić in order to continue with money laundrey, corruption and devastation of OU. And now they even have "their boy" Turudic to protect them, and he is doing it successfuly. But if you think it will last for ever, you are wrong. People are not blind and the clock is ticking. Best regards to Središnjica, enjoy your last days
And that's why you decided to join forces with expert from Vrapče!
DeleteWhat profitable lines did Kucko cut?
DeleteNone
DeleteHe expects multiple said lie to become truth
DeleteThis is pretty alarming!
ReplyDelete"Croatia Airlines' liabilities from three shareholder loans amounted to 78.8 million euros as of December 31, 2024. The company’s cash position at the end of the year stood at 44.8 million euros"
This means they have higher debt than the total sum of money they have. And company cash position isn't just money they have on the bank account. It is everything they own that can be turned into liquidity. That's pretty disastrous.
The only shareholder is the Government and these are Government loans.
DeleteCompany exists on taxpayer money. But cant be forever. Matter of time to see destiny of Adria Airways or Malev.
ReplyDeleteNow that's what I call the Ryanair effect.
ReplyDeleteWrong. It has nothing to do with FR. It's totally other story, joint Mafia and high politics are causing OU to slowly and painfully die
DeleteJasmin stop drinking coffee and sort this mess out.
ReplyDeleteĐasmin je tek skuhao novu kahvu 😀
DeleteA220 will fix it
DeleteI believe you are being sarcastic 13.22, but just in case of remote possibility being serious, I 'll go deeper on how will A220 fix it : 1. with enormously big lease rates compared to ZERO lease rates for Airbus fleet they owned previously. 2. with much lower LF and higher operational costs compared to current Q400 fleet. 3. with increased seasonality on new services they open as seasonal. 4. with no change at all in marketing, pricing, system of waves, routes structuring....
DeleteKresimir Kucko
ReplyDeleteAs a taxpayer this drives me crazy. How is it possible, with all the tourists coming that we are losing money? We were making more profit from OU before we joined the EU, we should be making triple that amount by now.
ReplyDeleteBad management appointed by a corrupt government
DeleteRupa bez dna.
ReplyDeleteAnd the hits just keep on coming.... 15 years of politicians wasting money 💰 on a dead horse 🐴. FFS shoot it in the head and make some glue.... It's a crime and it's cruel to continue using a whip on a dead horse...
ReplyDeleteThis is ridiculous!!! Need investigation in this miss management.
ReplyDelete