Croatia Airlines sees passenger growth and revenue surge

(Photo credit: Croatia Airlines/J. Škof)

Despite increased cost exposure during the fleet replacement transition period, Croatia Airlines achieved a net profit of €947,000 in the second and third quarters.

A second new Airbus A220 is expected by the end of the year, with six more scheduled for delivery throughout 2025.

Zagreb, 31 October 2024 – During the first nine months of 2024, Croatia Airlines transported 1.4 million passengers, a 6% increase compared to the same period in 2023.

Revenue passenger kilometres rose by 5%, with an average passenger load factor (PLF) of 64.7%. The number of passengers on domestic scheduled flights increased by 6%, and on international scheduled flights by 7% compared to the same period last year.

A total of 20,433 flights were operated (up by 2% from the same period in 2023), amounting to 28,858 block hours (an increase of 3%).

In the second and third quarters of 2024, the airline recorded a combined net profit of €947,000. However, with a net loss of €9.92 million during the first quarter—a period of low demand—the overall net loss for January to September stands at €8.98 million.

The transition period at the start of the fleet replacement process has introduced higher cost exposure across all business areas, especially in operations.

Increased aircraft maintenance expenses and short-term aircraft leases, essential to completing the scheduled flights, amounted to €11.6 million more than in the same period last year, exceeding the reported net loss for January–September. In the longer term, the airport slots secured and investment in new routes are expected to yield positive returns as the A220 fleet expands, starting as early as 2025.

Overall revenue levels for the first nine months of 2024 remained consistent with those for the same period in 2023.

(Photo: Croatia Airlines/J.Škof)

The largest share (88%) of total revenue came from passenger transport, which increased by approximately €10 million or 6%, reflecting a 6% rise in passenger numbers for the period.

At the same time, operating costs rose by 9% compared to the first nine months of 2023, largely driven by expenses related to the short-term leasing of aircraft needed during Airbus fleet maintenance periods, as well as increased aircraft maintenance costs.

Investment in training during the first nine months of 2024 reached €1.3 million, covering essential training for operational staff (pilots, cabin crew, and maintenance personnel).

Additionally, initial training for flight crews on the new Airbus A220 aircraft was conducted, alongside training for other operational staff (aviation mechanics, engineers, and operational centre personnel). Currently, a new group of pilots and mechanics is undergoing training on the A220 to prepare for the second aircraft’s arrival later this year.

Further cost pressures resulted from ongoing inflation, an increase in block hours (+3%), and higher passenger numbers (+6%). Staff compensation adjustments also contributed to the year-on-year increase in expenses.

In April 2023, gross wages rose by 10%, including a substantial increase in the company’s minimum wages to counter inflation. Wages rose again on 1 July 2024 under a new collective agreement, which will be effective for the next five years.

The fleet renewal of Croatia’s national carrier, now in its 35th year, marks a new chapter in operations, accompanied by an updated visual identity.

This refreshed look is designed to communicate the values of Croatia Airlines consistently, with a strong focus on passenger service and targeted engagement, reflecting trends and customer habits.

(Photo: S.Lugarov/Croatia Airlines)

In a landmark year, Croatia’s national carrier gained notable international recognition on 6 March 2024, when Jasmin Bajić, CEO of Croatia Airlines, was elected to the Board of Governors of the International Air Transport Association (IATA).

This appointment is an additional accolade for Croatia Airlines and affirms its growing influence and accomplishments in the aviation industry and market.