Croatia Airlines, loss of over 47 million euros for the whole year 2020.
Croatia Airlines has suffered the largest financial loss in eight years, while carrying the fewest passengers in 25 years, with the aviation industry being wiped out by the coronavirus pandemic in 2020.
Croatia Airlines recorded a loss of 47.3 million euros. During all this time, the company received state aid amounting to 11.7 million euros and a state guaranteed loan amounting to 33.2 million euros. At the same time, the company was recapitalized by the state with a cash injection worth 46.2 million euros.
The coronavirus crisis has drastically reduced travel demand.
"The year 2020 was marked by significant changes in the business environment, which had a huge impact on the company's finances. The crisis caused by the coronavirus has drastically reduced the demand for travel, which, in accordance with the travel restrictions imposed, has led to a decrease in capacity, a drastic reduction in flights, as well as the cessation of new services.
The Croatian carrier carried 618.000 passengers in 2020, a decrease of 73% from the previous year. It operated 13.052 flights, down 54%. The average cabin load factor was at a record level of 49.6%, down 24 percentage points. The quantity of transported goods decreased by 32.5% compared to 2019.
Croatia Airlines maintained scheduled services throughout the period through flight operations between Zagreb and Frankfurt. The Croatian carrier managed to improve its market share in the country by 13 points, up to 36%. This was primarily due to foreign carriers, which significantly reduced operations on the Croatian coast in the summer months.
"At the beginning of the March 2020 crisis, Croatia Airlines introduced rigorous cost-saving measures in all segments. These included concluding a new agreement with trade unions to reduce rights under the existing collective agreement, as well as negotiations with suppliers that led to significant savings. The airline renegotiated the leasing conditions for the planes and reduced the expenses for marketing and promotion "Croatia Airlines said.