Croatia Airlines warns limited income may impact liquidity
Croatia Airlines recorded a net loss of 22.2 million euros during the first three quarters of the year and although some improvements were made in the second and third quarters, the company noted it still faces reduced demand and uncertainty relating the coronavirus pandemic. Overall, the airline’s financial performance is a minor improvement on last year’s loss of 23.1 million euros but significantly behind its 2019 nine-monthly result which amounted to 6.5 million euros in the red. “Despite some positive developments during the second and third quarters, the company is still facing reduced demand and ticket sales, resulting in the limited flow of income, which may reopen the question of maintaining liquidity, especially if we take into account the uncertainty surrounding the duration of the crisis”, Croatia Airlines said. It added, “The company is undertaking all measures to actively manage liquidity and optimise the business. It is continuing to apply strict cost cutting measures”.
During the first nine months of 2021, Croatia Airlines handled 556.514 passengers, representing a decrease of 4.3% on the same period last year. “Only during the third quarter did we see a more notable improvement on 2020, but this is still far from the result achieved during the pre-pandemic 2019”, the Croatian carrier said. The airline welcomed 168.518 travellers on domestic flights, up 18%, while 373.242 passengers flew on the airline’s international operations, a decrease of 3%. The remaining 14.739 travellers were carried on charter services, which accounted for just 3% of total operations. The average cabin load factor stood at 50.7%, which is the same as last year. On domestic routes, the average loads amounted to 45.4%, down 5.1 points, while the average cabin occupancy on international services improved by 1.4 points to 52.5%.
Croatia Airlines noted that the number of bookings made for the second half of the year are lower than that of 2020. “An increase in the number of bookings for Croatia Airlines flights was recorded during the second quarter, however, if we look at the following six months in comparison to the same period last year, booking figures are down 34%”, the carrier said. In a positive development, towards the end of the third quarter, the carrier saw a surge in forward booking by 68%, however it is still 64% below 2019 levels. “These oscillating booking figures show the extend of the crisis, which is impacting demand and the dynamic of incoming bookings”, the national airline noted.
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