The airline's total revenue stood at 206.1 million euros, nearly matching the figures from 2023. However, operating expenses surged by 9% to 215.1 million euros, driven by higher maintenance, leasing, and personnel costs. To address maintenance schedules, Croatia Airlines resorted to additional short-term leases, which, in conjunction with inflationary pressures, resulted in an 11.6 million euro rise in operating costs.
Key contributors to the airline's escalating expenses included maintenance, which saw an 8% increase to 33.9 million euros, primarily due to the complexities of transitioning between aircraft types and managing two distinct fleet categories. The necessity for extra aircraft leasing to ensure service reliability further compounded the overall costs.
Additionally, passenger and airport service expenses rose by 7%, totaling 44 million euros, a result of increased passenger volumes, higher airport fees, and extended flight operations. In response to inflation and the need to attract skilled labor, Croatia Airlines implemented a 10% salary increase starting in April 2023.
A new five-year Collective Agreement established this year reinforced these changes, leading to an increase in the company’s general and administrative expenses, which reached 9.6 million euros.
Croatia Airlines reported growth in various operational metrics from January to September 2024. In this nine-month timeframe, the airline served 1,424,916 passengers, marking a 5.5% increase compared to the previous year, which translates to an additional 74,679 travelers. Nevertheless, this figure remains 16.2% lower than the pre-pandemic levels of 2019, equating to 276,655 fewer passengers.
Throughout the first three quarters of 2024, the airline accommodated 1,046,208 passengers on international routes, reflecting a year-on-year increase of 6.9%, while domestic services welcomed 333,096 customers, an improvement of 6.3%. The remaining 45,612 passengers were transported on charter flights, which saw a decline of 21.7%. The average cabin load factor was recorded at 64.7%, a decrease of 1.2 percentage points from the previous year and 9.1 points lower than in 2019.
Looking forward, Croatia Airlines expects to achieve financial stability once its A220 fleet is fully operational, anticipating reductions in maintenance and fuel expenses. The enhanced passenger capacity and lower operating costs associated with the A220 are projected to bolster profitability in the medium term.
Furthermore, the airline's expanded network and enhanced service offerings, including digital boarding tools, baggage tracking, and in-flight e-media options, are expected to enhance customer satisfaction and foster loyalty.