By Fabiana Rondón/Voice of America (VOA) January 06, 2020 French fries, a common food, affordable in most parts of the world and generally very popular, have become a luxury for many in Venezuela.The price of French fries in Venezuela ($4.50) greatly exceeds the cost of this product in countries of the region, such as Brazil ($3.35), Argentina ($3), Ecuador ($2.10), Colombia ($2), Chile ($1.83), Peru ($1.50), and Paraguay ($1.55).Very few people in Venezuela can afford to buy French fries, a popular food for Venezuelans, which, among many other aspects, highlights the economic and food crisis in the South American country.Such details expose the impact of hyperinflation on Venezuelans, which climbed from 2,616 percent in 2017 to 34,458 percent in 2018, and up to 136,000 percent as of October 2019, according to recent reports from the Venezuelan National Assembly led by Interim President Juan Guaidó.Venezuela continues to be one of the weakest points in Latin America’s economy, according to data and prospects from the latest report by the International Monetary Fund (IMF).Inaccessible French friesThe impact is even greater when the basic monthly income in Venezuela (150,000 bolivars or $8) is taken into account, which makes French fries a luxury meal instead of a quick snack for the day. VOA estimated that a person with the minimum monthly income in Venezuela must work more than 15 days to make enough money to buy the iconic McDonald’s product.French fries aren’t the only foods that have essentially become inaccessible for Venezuelans.Buying a medium-sized McDonald’s combo meal in Venezuela might be almost impossible for an average worker, since they would need to work 34 days, or more than a month, to afford a hamburger, a soda, and French fries at the world’s largest fast food chain, at a cost of 210,000 bolivars, or $11.
Emission prices CO2 recorded a significant increase so that in the period from January to September 2019 the cost of ETS and fuel increased by HRK 6,3 million compared to the same period in 2018. Also, the costs of passenger services are higher due to the increase in cabin crew costs (+1,2 million kuna) by applying the benefited length of service since the beginning of this year, in accordance with the legislation, and the increase in the cost of passenger fraud. Sales and promotion costs were up 1,7 percent while other expenses rose due to higher expenses in previous years. Other cost categories were lower than last year. Although the profit was realized in the second and third quarters, it is not enough to cover the losses of the winter period of low demand on the Croatian aviation market, and in the period January – September 2019. realized operating loss in the amount of HRK 30,4 million. With a net financing result, the final loss is HRK 48,4 million. Operating revenues in the period January – September 2019 were 1,4 percent higher compared to the same period last year. With the retention of the same number of transported passengers as in the period January – September 2018. and revenues from passenger traffic are at the level of the same observed period in 2018. Operating expenses in the said period were 1,3 percent higher compared to the same period in 2018. The largest increase was recorded in depreciation costs due to the application of the international accounting standard IFRS 16, which had a negative impact on the achievement of business results, primarily due to an increase in depreciation costs, which, together with depreciation based on mandatory major fleet / engine work, increased by 82 million kuna. The application of IFRS 16 also brought changes in the cost structure, which consequently affected the increase in the EBITDA performance indicator by almost HRK 83 million compared to the realization in the first nine months of 2018. The net effect on the result, which arose from the change in the method of recognizing operating lease costs, amounted to HRK 11,2 million, which is an increase in total costs compared to the previous bookkeeping treatment. In the period January – September 2019, a total of 1,701.571 passengers were transported, which is at the level of the same period last year. The passenger occupancy factor (PLF) increased by 0,1 percentage point, amounting to 73,8 percent. In international regular traffic, 2 percent more passengers were transported, while in domestic regular and charter traffic, a smaller number of passengers was realized compared to the same period in 2018. In the third quarter of 2019, the Croatian national carrier Croatia Airlines recorded an operating profit of HRK 49,3 million and a net profit of HRK 41 million.