Croatia Airlines will cancel around 900 flights over the next three months, representing roughly 5% of its planned 27.000 operations due to the sharp surge in jet fuel prices triggered by the conflict in the Middle East. This is despite the carrier continuing to see strong demand, reflected in its growing passenger numbers. Speaking to the “RTL Croatia” network, Croatia Airlines’ Chief Commercial Officer. Slaven Žabo, said, “The unfavourable geopolitical situation has had a negative impact on fuel prices. Jet fuel prices have doubled since the outbreak of the crisis and have risen more sharply than crude oil prices. Current jet fuel costs will result in multi-million-euro losses for all airlines, including Croatia Airlines, during this period”.
Mr Zabo noted the carrier is attempting to reduce the financial burden by revising its timetable. “We are trying to offset costs through network and capacity optimisation, as well as by improving efficiency. That means aligning capacity with current demand, operating costs and revenue levels on individual routes, which naturally also includes flight cancellations”, the Chief Commercial Officer said. The carrier has discontinued six routes this summer and has trimmed frequencies on several services. “Besides fuel, which remains the key cost factor, ticket prices in the coming period will also be affected by rising charges from other stakeholders. For example, Zagreb Airport announced a 20% increase in fees from 1 June, which will directly impact fares through higher passenger charges”, Mr Žabo noted.
Despite the difficulties, Mr Žabo remains optimistic about the airline’s operational performance. “In these negative geopolitical circumstances, the strong operational growth Croatia Airlines achieved during the first part of the year is encouraging. In the first four months, we recorded passenger growth of 23%, carrying almost 100.000 additional travellers. That growth made a significant contribution to the positive tourism results in the first part of the year. Looking at those figures, as well as current booking trends, we have reason to be optimistic and can expect a good season”, Mr Žabo concluded.
