Croatia Airlines ups passenger traffic by 2% y/y in June

National flag-carrier Croatian Airlines transported 231,804 passengers in June, up by 2% on the year, local media reported over company’s announcement. Thus, the positive trend of May when a record-high 214,000 passengers, up by 9% y/y, were transported, has continued. Thus, the airline transported 949,000 people on domestic regular and international scheduled flights in January-June, some 5% more on the year. A positive impact to the increase in the number of transported passengers had the opening of regular flights from Zagreb to Mostar (throughout the year) and Dublin (during the summer season), as well as the introduction of new seasonal lines Dubrovnik-Munich and Split-Copenhagen. In June, Croatia Airlines also performed six charter flights, with about 700 fans transferred to the matches of the Croatian soccer team at the World Championships in Russia.

Recall that a major jeopardy for the otherwise seemingly successful summer season was prevented last week after the largest trade union in the sector, the Independent Croatian Trade Union of Workers in Air Transport (SHSZUZ) announced it does not support the upcoming strike organized by the ORCA union at Croatia Airlines, which was to take place on Jul 9. SHSZUZ was preoccupied with damages to be suffered by the airline following the strike, but insists that the government should be more involved in the issue and called for PM Andrej Plenkovic to meet union’s representatives. Note that ORCA planned the strike over the failed negotiations on new collective agreement — unions are demanding more days off and more vacation days, a deal on cabin crew rotation schedules, and increased compensation for workers while on sick leave; they also want more full-time, unlimited contracts for cabin crew staff who have been working only on seasonal contracts for years. In response to the strike warning, Croatia Airlines’ management announced it will cancel all annual leave for workers in the company approved for July and August and will cut strikers’ salaries and other contributions as a measure to repel any potential detriments from the strike. The government keeps looking for a new strategic partner to Croatian Airlines.

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