Croatia Airlines registers €12.9 million loss in Q1
Croatia Airlines has seen its losses narrow to 12.9 million euros during the first quarter of the year, down from 14.6 million over the same period in 2020. The figure is also an improvement on the pre-pandemic 2019, when it registered a 13.3 million euro loss during the first quarter. Revenues were slashed by 54.4% to 15.1 million euros in the January - March period, from 32.7 million a year earlier, while expenditure was down from 47.2 million to 27.9 million euros, primarily because of the decreased volume of flight operations. At the end of the quarter, Croatia Airlines had 949 employees, down from 1.037 during Q1 2020.
The Croatian carrier had a high level of liquidity by the end of March this year due to state aid, a government equity loan and state recapitalisation which was carried out towards the end of 2020. However, the airline warned it may soon face liquidity issues again. “The company is facing decreased demand for travel and ticket sales. Therefore, the question of liquidity may arise again in the coming period, especially when we take into account the uncertainty over the duration of this crisis. The company is undertaking all measures to actively monitor liquidity, as well as optimise its business. As a result, we continue with the implementation of rigorous cost saving measures”, the airline said.
Croatia Airlines has registered an 89% decline in bookings during the first quarter, while passenger numbers were down 73% to 72.263. At the start of the year, Croatia Airlines employed an external consultant, BDO Savjetovanje, to draft a document entitled “Analysis of the intended use of state aid and savings made since the start of the Covid-19 pandemic”, which covered all aspects of the austerity measures undertaken by the carrier. The document also includes a savings plan for 2021. Croatia Airlines recently said it had begun work on a “Post Covid Strategy” and was also seeking an external advisor to work alongside it in creating the document.
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