Croatia Airlines Struggles: A Year of Increased Losses and New Fleet Transition
Croatia Airlines Experiences Greater Losses in 2025 compared to 2024
It's May 2025, and Croatia Airlines is starting the year with a hefty financial burden, reporting losses of a staggering €15.9 million in just the first quarter. This figure surpasses the losses recorded in the same period last year by quite a margin.
As Marija Brnic from Poslovni Dnevnik puts it, the transition to a new fleet marked the last business year for the national airline, proving to be even more challenging than initially anticipated[1]. With the acceptance of the new Airbus A220s on the horizon for 2025, the level of challenges and risks is expected to escalate further[1].
In the consolidated financial report for 2024, total revenue reached €269 million, representing a modest 2% increase compared to the previous year[1]. However, the increase in costs, which expanded at a rate of 10%, outpaced revenues, resulting in continued losses of €19.4 million for Croatia Airlines[1].
Passenger numbers in the very beginning of the year grew by about 2%, with Croatian scheduled traffic experiencing a more substantial increase[1]. Depreciation costs and an increase in employee income contributed to the rise in the first quarter's operating costs by 7%[1]. The growth was driven by the collective agreement with unions, the hiring of additional pilots, and other staff for the new Airbus fleet, as well as investments in training crews to fly the new planes[1].
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Croatia Airlines ended March with 951 employees, 30 more than the previous year[1]. Other causes for the increased costs included investments in training pilots and staff, and the delay in the delivery of aircraft, which entailed the creation of new costs and rearrangements in operations[1]. Last year, the first two of the 15 planes ordered were received, and this year, the fleet should be bolstered by five more aircraft[1].
Alas, the delay that the company faced in 2024 has continued into 2025, with aircraft manufacturers already announcing new delays in delivery deadlines[1]. The first Airbus of this year's series is expected to arrive in May, and Croatia Airlines currently operates 14 aircraft in its fleet[1]. In early 2025, the airline had flights to 13 international and five Croatian destinations, and during the tourist season, it will connect Croatia with a total of 29 international airports[1].
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Recently, the company disclosed plans to expand its network of international destinations with new routes to Milan, Prague, Bucharest, Madrid, and Hamburg. Additionally, the number of flights on existing routes from Zagreb, Split, and Dubrovnik will be augmented[1]. All these new routes are planned to be operated on the Airbus A220. The airline aims to increase the number of routes by 8% during the summer season compared to last year's summer season, totalling 18,800 flights[1].
Despite the heavy losses incurred during the first quarter, the negative balance of capital and reserves now stands at -€14.4 million[1]. The management expects the airline to continue incurring losses and anticipates continued support from the state to help successfully overcome the challenging period of aircraft fleet replacement through planned recapitalization[1].
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- Poslovni Dnevnik. (2025). Croatia Airlines continues to incur losses, expects expansion with new routes. Retrieved from www.poslovni-dnevnik.hr/gradaska-linija-zadržavajuce-zgube-ocekuje-rast-broja-putovanja-na-novim-putovnim-racunima-529720
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- The incoming Airbus A220s, scheduled for delivery in 2025, are expected to escalate the challenges and risks for Croatia Airlines due to their transition to a new fleet.
- The increased depreciation costs and employee income, driven by the hiring of additional pilots and staff for the Airbus fleet, contributed to the rise in operating costs by 7% in the first quarter of 2025 for Croatia Airlines.
- The continued delays in aircraft delivery, both in 2024 and 2025, have created new costs and operational rearrangements for Croatia Airlines, exacerbating their financial struggles.
