Croatia Airlines Operating at a Loss despite Recovery Efforts
Croatia Airlines reported increased operating costs, with fuel costs having the largest impact to its bottom line.
Croatia Airlines reported increased operating costs, with fuel costs having the largest impact to its bottom line.
DALLAS — Croatia Airlines (OU) reported a net loss of US$19m for the year despite carrying 1.45 million passengers. This number was still a third behind what was attained in 2019.
According to the airlines, the average passenger load factor last year was 62%. For the time period, it made US$223.96m in revenue, of which US$178.6m came from passenger services.
Nonetheless, the airline reported significantly increased operating costs, with fuel costs having the "largest impact" at US$29.34m, according to the report.
The one-time cost associated with returning an Airbus A319 to its lessor was one of the consequences of the losses, which totaled US$13.92m in operational revenue for the entire year.
It has been putting into action a post-pandemic recovery program with strategic initiatives over a three-year period that it expects will allow the business to achieve sustainable operations. The program was developed in mid-2021. The primary objective of this initiative is to replace the carrier's fleet of aircraft with more affordable models.
Croatia Airlines has chosen 149-seat Airbus A220-300s and 127-seat A220-100s for delivery between 2024 and 2026. OU reached long-term operational lease agreements with an Irish-based company connected to US lessor Air Lease in January of this year for six aircraft — four -300s and two -100s.
The airline plans to buy 12 planes, with the potential to add three more in 2027.
Featured image: Croatia Airlines 9A-CTL AIRBUS A319-112. Fabrizio Spicuglia/Airways
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