At the end of the third quarter 2013 Croatia Airlines recoreded net profits of 20.3 million kuna
Zagreb, 4th November 2013
Due to the successful implementation of restructuring measures, in the first three quarters of this year, Croatia Airlines recorded net profits in the amount of 20.3 million kuna, which is a positive change compared to the same period last year. Also, the operating profit amounted to 28.8 million kuna, which is several times better compared to the same period last year when the operating profit was 2.7 million kuna.
Despite a challenging economic situation, the numerous difficulties that the air traffic market is faced with and worsened business conditions for many companies in Croatia, Croatia Airlines recorded positive business results at the end of this year's third quarter
Croatia Airlines' positive business achievements are the result of the implementation of strategic, operational and financial restructuring measures. As a result, in the first nine months of this year, the operating costs were 10 per cent lower than last year's level, which resulted in an increase in operating profit of more than 26 million kuna.
This year's net profit recorded after the third quarter has been recorded for the first time since 2007, when the realised net profit at the end of the year was 1 million kuna. Such results justify the implementation of the Croatia Airlines' restructuring program approved by the Agency for the Protection of Market Competition in line with the European Commission's regulations.
Continued implementation of the rationalisation and cost cutting measures has become an ongoing task of the company and it is systematically implemented in all business processes and at all levels of company management. These measures are related to the restructuring of flight times, reorganisation of the company with the aim of establishing an optimum organisational structure with a narrowed management structure and adjustment to actual work processes, increasing the traffic accuracy and work productivity, reassessing contracts with suppliers, decreasing passenger service costs etc.
The company also recorded extraordinary revenues by leasing the aircraft A320 with the crew (18.9 million kuna). Other activities aimed at increasing revenues include the introduction of the Revenue Management project, the signing of the code share agreement with United Airlines, new commercial arrangements which are being considered, intensive web promotion outside Croatia, and considering the possibility of realizing additional revenues on the basis of Ancillary Revenues.
The implementation of other measures envisaged within the restructuring process will ensure long term sustainability of the company and its further development. Bearing in mind the actual market opportunities and projections, this will further improve Croatia Airlines' successful position on the regional and European air traffic market.