Croatia Airlines posts Jan-Sep 2018 loss of €4.6 million

In Q3 2018, the airline posted net profit of 45.2 million kuna (€6 million), which, even together with the 4.9 million kuna (€659,237) profit posted in Q2 2018, was not enough to cover the loss of 84.5 million kuna (€11.4 million), incurred in the first quarter of 2018.

The January – September business results were negatively impacted by the increased price of jet fuel, as well as two strike announcements during the summer season, which led to a drop in expected passenger traffic, the company said.

The unions representing pilots, cabin crew, and aircraft mechanics employed in the airline announced strikes on two separate occasions this summer. The first announcement came in early July, but the strike was postponed after the unionists met with Prime Minister Andrej Plenkovic, who promised them their problems would be addressed.

The unions demanded higher salaries, a new collective agreement, and less overtime work assigned to employees, but the primary issue concerns appointing the new management which would make it possible to finally sign a new collective agreement, after the last one had expired in December 2016.

The second strike was announced for early August, after the unions had said that Plenkovic did not keep his promise that all the necessary conditions for fulfilling the workers’ demands would be met soon. However, Zagreb County Court banned the strike, saying the unions did not negotiate “in good faith” on the signing of a new collective agreement.

The period from January to September recorded 1,705,470 passengers, a three percent increase compared to the same period last year, with domestic traffic going up one percent, and international traffic three percent.

The company plans to begin activities related to drafting a recapitalisation model, and it is in the process of finding a potential strategic partner.

During this year's summer season Croatia Airlines had direct flights to 39 European destinations in 24 countries. Its fleet consists of 14 airplanes. The company, based in Buzin near Zagreb, has been a member of the global Star Alliance airlines group since 2004.

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