Croatia Airlines operates profitably for the fourth consecutive year
Zagreb, 27th April 2017
Croatia Airlines has been operating profitably for the fourth consecutive year. After having operated positively for three consecutive years (2013-2015) during the implementation of the restructuring programme, the company’s positive trends continued in 2016 as well, when a net profit of HRK 8 million was generated.
Operating revenues in 2016 (HRK 1.56 billion) were 1 percent higher than in 2015. In the structure of operating revenues, the largest share (87 percent) was related to passenger revenues, which were 2 percent higher than the previous year. At the same time, a lower growth of passenger revenues in relation to the number of passengers carried (+5%) was caused by a reduction in average fare rates in conditions of a significant increase in competition in the Croatian aviation market, particularly during peak season (June-September).
Operating costs in 2016 amounted to HRK 1.55 billion, which is 1 percent higher than in 2015. The most significant increase was related to maintenance costs, which were 11 percent or HRK 24 million higher, and this due to increased maintenance and part replacement costs, engine leases and higher service costs paid to other airline companies caused by an increased number of works required. Depreciation costs were higher by 17 percent or HRK 12.3 million, due to higher investments in aircraft and engines than in 2015.
Due to all of the above, as well as to other costs being lower than in 2015, when other costs were affected by the implementation of own contribution measures as part of the restructuring programme, the company’s operating profit in 2016 was lower than in 2015.
Last year’s investments of Croatia Airlines were 44 percent higher than in 2015, and pertained mostly to investments directly related to flights, and aircraft maintenance and operation.
During 2016, a total of 1,940,000 passengers were transported, or 5 percent more than in 2015. In terms of passenger numbers, international passenger traffic accounted for a 5.5 percent increase, while flights within Croatia for a 4 percent increase in comparison to 2015. A record-breaking average passenger load factor (PLF) was recorded, having reached 70 percent for the first time in the company’s history.
In 2016, four new flight routes were introduced – from Zagreb to Lisbon, Milan, Prague and St. Petersburg – and the companies’ aircraft flew directly to 35 destinations in 20 countries.