Croatia Airlines reduces loss to 75.8 mln kuna

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The loss of Croatia Airlines in 2011 amounted to HRK 75.8 million, which is a 52-percent drop from 2010 and a result that is in line with objectives from the airline's business plan, the company said in a statement on Tuesday.

In 2011 Croatia Airlines started implementing a plan designed to overcome a deep crisis marked by losses, the company said, adding that the business plan for the 2010-2013 period envisaged restructuring and gradual reduction of losses towards borderline profitability until 2012.

In line with those objectives, the company's management has been changed, the company has been reorganised and it has started implementing the 2010-2013 plan in all business segments.

The company notes in the statement that despite adverse business conditions in 2011, it achieved record results, with the number of passengers going up 15 percent from 2010 to 1.87 million. This is the best result in the company's history, accompanied by a record-high plane occupancy rate of 67 percent.

Operating revenues increased by 14 percent or HRK 198 million, while operating costs went up 8 percent.

Fuel costs grew 41 percent from 2010, foreign sales went up 21 percent while domestic sales stagnated.

All of this contributed to a 52-percent reduction of the net loss to HRK 75.8 million, in line with goals set for 2011.