Croatia Airlines hit by poor Q1 performance
Croatia Airlines saw its losses widen and passenger numbers decline during the first quarter of 2019, with the carrier blaming a range of factors for its weaker performance. The company recorded a net loss of 13.3 million euros during the three-month period, up from its loss of 11.4 million euros in Q1 2018. During the first three months, revenue declined 3% to 34.5 million euros, while expenditure was up 2% totalling 48.1 million euros. The airline blamed the result on the high cost of engine maintenance, which totalled 3.6 million euros, as well as new international accounting standards. It spent most on flight operations, primarily due to the higher cost of fuel, followed by promotions and sales, as well as maintenance.
The national carrier handled 345.800 passengers on board its aircraft during the January - March period, a decline of 2.4%. Of those, 88.214 travellers were carried on domestic flights, down 4.1%, while 256.435 passengers flew on international services, a decline of 1.2%. The remaining 1.151 passengers were carried on charter flights, down 60.1% year-on-year. However, charters accounted for only 1% of overall traffic. The airline noted its softer operational performance was down to the Easter holidays falling earlier in 2018, as well as Croatia hosting of the European Men's Handball Championships in January of last year, which generated more traffic. Croatia Airlines noted its passenger numbers should rebound in the coming quarters based on solid advanced bookings.
The airline operated 5.019 flights during the first quarter of the year, which is down 1.4% compared to the same period in 2018. The average cabin load factor stood at 68.6%, down two points. Loads were softer on international flights by 1.3 points for an average of 70%, while on domestic services they were down 4.6 points to 60.3%. Passenger carrying capacity, measured in Available Seat Kilometres (ASKs), stood at 333 million, down 0.6% year-on-year. The airline’s cargo operations were weaker by 10.2%, with 476 tonnes of mail and freight uplifted in the first quarter of 2019, compared to 530 the year before. The number of employees at the company increased slightly, from 979 to 1.000.
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