Rising fuel prices lead to a loss of 15.2 million euros at Croatia Airlines

Croatia Airlines saw its losses widen to 15.2 million euros in the first quarter of the year despite an increase in revenue as the carrier blamed rising fuel prices for its lackluster performance. It was the airline’s worst first-quarter financial result in at least eight years. The loss increased by 19% compared to the same period in 2021, while costs soared by 61%. Revenues are up 85% from last year, but are still down 25% from 2019 before the pandemic. cash outflow. The continuing war in Ukraine and the unpredictability of the pandemic continue to have a major impact on demand and, consequently, revenues, Croatia Airlines said. He added: “All of this may again raise questions about maintaining liquidity. The company is taking all necessary steps to actively manage cash and optimize the business. It continues to implement rigorous cost reduction measures, which is in line with Croatia Airlines’ post-Covid strategy.”

In the first three months of the year, Croatia Airlines operated 4,149 flights, while sales were three times higher in the same period of 2021. Existing reservations between May and October show a noticeable recovery and are 2.3 times higher than last year, but still down 54% on the 2019 record. “Croatia Airlines has gradually increased its frequencies and renewed some routes. Passenger booking behavior has changed significantly from pre-pandemic years, with late bookings prevailing during the crisis and these trends continuing into 2022,” the carrier noted. Overall, Croatia Airlines had 939 employees at the end of March this year.

Croatia Airlines welcomed 200,721 travelers in the first quarter of the year, a notable increase of 177.8% compared to 2021. It added 96,861 passengers. However, the figure is still down 42% from 2019. The carrier welcomed 56,428 travelers on its domestic services, up 122%, while 142,149 passengers flew on international flights, an increase of 214%. . The remaining 2,144 customers were handled on charter flights, up 36%, although charters accounted for only 1% of total traffic. The airline noted that these operational results were better than expected. The carrier’s average cabin load factor was 51.4%, up 6.6 points from 2021. On domestic services, the figure was 49%, an improvement of 13, 8 points, while the average load factor on international flights rose to 51.9%. 2.2 points. Overall, the airline has increased capacity on its international operations by 194% compared to the first quarter of 2021.

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