Croatia Airlines posts €10.7 million loss
Croatia Airlines registered a net loss of 10.7 million euros in 2019, representing an improvement on the year before when the figure stood at eleven million. The company blamed its results on new IFRS 16 accounting standards, costs relating to aircraft overhaul and maintenance, as well as growing expenses under the European Union’s emission trading system. Revenue grew from 229 million euros in 2018 to 230 million last year, while expenditure remained mostly unchanged, totalling 238 million euros. It spent most on aircraft leasing, as a result of the wet lease for two Air Nostrum Bombardier CRJ1000 jets, as well as “unexpected” engine work on its fleet.
Croatia Airlines handled a record 2.179 million passengers during the year, an increase of 0.5%. The company operated 28.432 flights during 2019, which was up 1.5% compared to the year before. The average cabin load factor, a measure of seat capacity utilisation, stood at 73.6%, up from 73.5% in 2018. Passenger carrying capacity, measured in Available Seat Kilometres (ASKs), amounted to 2.3 billion, up 0.5% year-on-year. The airline’s cargo operations recorded a decline of 5.7%, with 2.135 tonnes of mail and freight uplifted in 2019, compared to 2.264 tonnes the year before. Overall, the carrier maintained flights to 38 destinations in 24 countries.
Croatia Airlines' market share on its home turf averaged 23% during the year, down from 25% in 2018 and 38% in 2017, although it peaked at 52% over the winter months (January and December). Its lowest market share was recorded in July and August when it averaged just 15%, marking its smallest monthly share on record and down 1% on the year before. "The high level of seasonality on the Croatian aviation market continues to pose a major problem for the company and its business. During the summer season, there are almost 100 airlines operating flights to Croatia, with more than a half of all passengers carried during the third quarter, while competition is minimal in winter. Croatia Airlines maintains flights throughout the entire year, providing Croatian airports with year-round connectivity", the carrier said.
Croatia Airlines is expected to be privatised during the year, with the government setting the month of June as a deadline to finalise a deal with a potential investor. The company recently outlined its plans for 2020, which includes two new seasonal routes, the long-term lease of two aircraft and one short-term wetlease.
0 Response to "Croatia Airlines posts €10.7 million loss"
Post a Comment