Croatia Airlines has posted a €20.9 million net loss for the first nine months of 2025, more than double the €9 million recorded during the same period in 2024. The national carrier’s ambitious fleet renewal programme, involving the replacement of older Airbus A319, A320 and Dash 8-Q400 aircraft with new Airbus A220s has driven up expenses and eroded profits despite strong summer travel demand.
Croatia Airlines’ Fleet Renewal Takes Financial Toll
Croatia Airlines‘ operating revenues rose 3% year-on-year to €204.7 million, supported by solid growth in ancillary income.
However, operating costs climbed 9% to €226.2 million, fuelled by higher maintenance, airport and navigation fees as well as a 50% jump in depreciation linked to the induction of new aircraft.
The airline’s operating loss widened to €21.5 million, reflecting ongoing transition costs estimated at €19.9 million by September, already exceeding last year’s total.
Debt and Equity Pressures Mount
Croatia’s Airlines’ capital position remains fragile with negative equity of -€18.8 million and long-term liabilities reaching €258 million.
This imbalance shows that accumulated losses have outpaced asset value, leaving the company dependent and institutional backing to maintain liquidity.
Despite the financial strain, the airline emphasized these losses stem from a planned investment cycle aimed at ensuring long-term sustainability.
The four-year transition, set to conclude in 2027, is expected to reduce costs, improve efficiency and lower fuel consumption once the entire A220 fleet is operational.
Passenger Growth Offers a Silver Lining
Between January and September 2025, Croatia Airlines carried 1.55 million passengers, a 9% increase year-on-year.
Domestic traffic surged 12%, while international scheduled passengers grew 8.8%, thanks to new routes and greater seat capacity.
However, charter flights fell 8.2%, largely due to suspended Tel Aviv services amid regional instability.
Load factors showed modest improvement, averaging 66.3%, up 1.6 points from 2024, though still below pre-pandemic levels.
Croatia Airlines said the introduction of the Airbus A220 fleet “lays the foundation for long-term sustainable operations,” promising improved environmental performance and alignment with European decarbonisation goals.
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