Croatia Airlines carried more than 2 million passengers in 2025

Croatia Airlines, the Croatian national carrier, transported a total of 2,042,993 passengers in 2025, representing an 11% increase compared to 2024. Passenger traffic at Croatian airports also grew by 6.8%, increasing Croatia Airlines’ market share in the highly competitive Croatian aviation market.

During the same period, the airline operated 27,272 flights, a 3% increase year-on-year, while passenger kilometres rose by 11%. The passenger load factor also increased by 1.2 percentage points compared to the previous year.

The company’s 2025 results were marked by the continuation of the largest investment cycle in its history—the complete renewal of its fleet with new Airbus A220 aircraft. During the year, five new aircraft were introduced, meaning that from October 2025 until year-end, the airline operated a total of seven Airbus A220 aircraft. The new fleet has already demonstrated its value, with increased passenger preference compared to competitors.

The intensive transition phase—featuring simultaneous introduction of new aircraft and gradual withdrawal of older ones—had a predictable impact on financial results. In 2025, Croatia Airlines recorded an operating loss of EUR 36.3 million and a net loss of EUR 38.7 million. At the same time, EBITDA remained positive at EUR 9 million, marking a 23% increase compared to 2024.

Transition costs related to fleet renewal in 2025 were estimated at EUR 21.2 million. These costs mainly stem from global supply chain disruptions in the aviation industry, including extended leasing of existing aircraft and engines, delays in new aircraft deliveries, aircraft decommissioning preparations, procurement of spare parts and engines for the new fleet, crew and technical staff training, and additional operational costs caused by traffic disruptions—factors largely beyond the company’s control.

Total operating revenues in 2025 increased by 6%, while operating expenses rose by 13%. The increase in costs was primarily driven by amortisation, air navigation services, aircraft maintenance, and EU ETS CO₂ costs. Additional pressure came from global supply chain disruptions, limited availability of spare parts, labour shortages at European airports, rising service costs, and geopolitical instability, particularly in the Middle East, which resulted in the cancellation of planned charter flights to Israel, with an estimated negative impact of around EUR 2.6 million.

Despite these challenges, Croatia Airlines continued to expand its network, directly connecting Croatia with 28 international destinations across 29 European airports and operating 53 international routes. The summer schedule introduced new routes from Zagreb to Madrid, Milan, Hamburg, Prague and Bucharest, alongside increased frequencies from Zagreb, Split and Dubrovnik. Several seasonal routes were also extended into the winter schedule, strengthening year-round connectivity and supporting Croatian tourism.

In 2026, the company operates in a significantly more complex global environment, marked by renewed geopolitical instability following the outbreak of conflict in the Middle East in February 2026. This has disrupted the relative stability of 2025 and increased uncertainty in energy and aviation markets.

The conflict has already driven a sharp rise in jet fuel prices, in some cases more than doubling compared to pre-crisis levels. Airspace restrictions and supply chain disruptions have further increased operational complexity and costs. The aviation sector remains highly exposed, with cancellations, fleet groundings, inflationary pressure, and limited ability to pass on rising costs to the market.

In this environment, Croatia Airlines recorded strong passenger growth in Q1 2026, carrying 405,160 passengers, a 23% increase (around 75,000 more passengers) compared to the same period in 2025. This contributes to the development of year-round tourism in Croatia.

However, the combination of fleet transition costs and rising fuel prices resulted in a negative financial outcome in Q1 2026, with an operating loss of EUR 22.1 million and a net loss of EUR 29.9 million. Foreign exchange differences added further pressure, increasing the loss by approximately EUR 6.2 million due to USD exchange rate fluctuations.

The company is currently in the most demanding phase of its transformation. During 2026, Croatia Airlines expects delivery of seven additional Airbus A220 aircraft, subject to potential delays. In March 2026, the eighth Airbus A220 was already introduced into the fleet, continuing the largest investment cycle in the company’s history.

At the same time, older aircraft are being gradually withdrawn, increasing operational complexity due to the management of a mixed fleet of three aircraft types.

The airline also supported the repatriation of Croatian citizens from the Middle East in March 2026, operating special flights from Dubai and Riyadh that returned more than 300 people, including families with children, in cooperation with state authorities.

The outlook for the remainder of 2026 remains highly uncertain, with key risks including fuel price volatility, spare parts availability, aircraft delivery schedules, and regulatory requirements related to decarbonisation and sustainable aviation fuel (SAF).

In such conditions, cost management, operational stability, and adaptability remain key priorities, while financial performance will largely depend on external factors beyond the company’s control.

Croatia Airlines remains focused on completing its fleet renewal and stabilising operations, strengthening its network and ensuring long-term sustainable and competitive growth, while continuing to serve as an essential part of Croatia’s transport infrastructure and tourism economy.

Source and photo: Croatia Airlines