Croatia Airlines has reported a net profit of €1.69 million for the first half of 2023, a significant improvement from last year's net loss of €21.8 million. The airline recorded 39% increase in passengers compared to the first half of 2022, but falls short of pre-pandemic levels in 2019.
Additionally, the airline improved from its pre-pandemic results, in the first half of 2019, the airline recorded a net loss of €11.9 million.
Croatia Airlines attributes its improved financial results to increased demand for air travel, higher frequencies, and the introduction of new routes. However, expenses, particularly fleet maintenance, also rose due to an aging fleet and increased flight operations.
The airline recorded a net loss in the first quarter but was able to improve enough in the second quarter to record a net profit of €1.69 million.
Throughout the first half (H1) of 2023, the airline increased its revenue by 52% as compared to the first half of 2022. This increase was driven by an 83% increase in income from passenger transport. Additionally, the airline's expenditure grew by 14% compared to 2022 mostly due to an increased number of operated flights.
"The first half of 2023 was characterized by strong growth in demand for air travel following the coronavirus pandemic. Accordingly, Croatia Airlines has increased frequencies and introduced new routes, which has resulted in an increased number of flights. Positive trends on the market, strong growth in income, as well as the stabilization of the price of fuel have all contributed to the significantly improved financial results during the first half of 2023,” the airline said in a statement.
The airline reported its largest increase in expenses due to fleet maintenance due to increase in operating flights. The airline has also started making delivery payment for several incoming Airbus A220 aircraft and is expecting delivery by Q1 of 2024.
In the first half of 2023, Croatia Airlines carried 773,000 passengers, recording a 39% increase over the same time last year. This year the airline reported 19.5% less passengers than the first half of 2019. Croatia Airlines is expecting to reach this level by next year.
Croatia Airlines recorded nearly 190,000 passengers on domestic flights with a load factor of 58.9%. and 565,000 passengers on international flights with an average load factor of 64%.