Croatia Airlines continuing largest investment cycle in its history in 2026

Croatia Airlines continuing largest investment cycle in its history in 2026
April 30, 2026

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Croatia Airlines continuing largest investment cycle in its history in 2026

(Photo: Croatia Airlines)

ZAGREB, 30 April 2026 – Croatia’s national carrier, Croatia Airlines, transported more than 2 million passengers in 2025, marking a significant year of growth alongside an ongoing fleet modernisation programme.

The airline carried a total of 2,042,993 passengers, representing an 11% increase compared to 2024. This growth outpaced overall passenger traffic at Croatian airports, which rose by 6.8%, allowing the airline to strengthen its market share in an increasingly competitive aviation sector.

During the same period, Croatia Airlines operated 27,272 flights, up 3% year-on-year. Passenger kilometres also increased by 11%, while load factors improved by 1.2 percentage points, reflecting stronger demand and improved capacity utilisation.

The year was marked by the continuation of the airline’s largest investment cycle to date – the complete replacement of its fleet with new Airbus A220 aircraft.

Five new aircraft were introduced in 2025, bringing the total to seven A220s in operation by the end of the year.

The modern fleet has contributed to increased passenger demand, although the transition has also brought financial pressures. Croatia Airlines reported an operating loss of €36.3 million and a net loss of €38.7 million for 2025. However, EBITDA remained positive at €9 million, up 23% compared to the previous year.

(Photo: Croatia Airlines)

Transition-related costs, estimated at €21.2 million, were largely driven by global supply chain disruptions, delays in aircraft deliveries, extended leasing arrangements, staff training, and operational disruptions beyond the airline’s control.

Total revenues increased by 6% in 2025, while operating costs rose by 13%. The increase was mainly linked to higher depreciation, maintenance, air traffic service charges, and EU emissions costs.

The airline also faced broader industry challenges, including labour shortages at European airports, limited availability of spare parts, rising service costs, and geopolitical instability. Planned charter flights to Israel were cancelled due to tensions in the Middle East, resulting in an estimated €2.6 million negative impact.

Despite challenges, Croatia Airlines continued expanding its network, connecting Croatia to 28 international destinations and 29 European airports across 53 routes.

New routes introduced from Zagreb included Madrid, Milan, Hamburg, Prague and Bucharest. Frequencies were increased on existing routes from Zagreb, Split and Dubrovnik, while some seasonal routes were extended into the winter schedule, supporting year-round tourism.

(Photo: Croatia Airlines)

The first quarter of 2026 saw continued growth, despite a more complex global environment shaped by renewed geopolitical tensions in the Middle East.

Croatia Airlines carried 405,160 passengers in Q1 2026, a 23% increase compared to the same period last year. This growth significantly outpaced overall airport traffic in Croatia, which rose by 10%, further strengthening the airline’s market position.

However, rising fuel prices, which more than doubled in a short period, along with ongoing fleet transition costs, impacted financial results. The airline recorded an operating loss of €22.1 million and a net loss of €29.9 million in the first quarter.

Croatia Airlines remains in a critical phase of transformation. The airline expects to receive seven additional Airbus A220 aircraft during 2026, following the delivery of its eighth A220 in March.

At the same time, older aircraft are being phased out, creating additional operational complexity as the airline temporarily manages a mixed fleet.

In March 2026, the airline also played a key role in crisis response operations, repatriating more than 300 Croatian citizens from the Middle East through special flights organised in cooperation with government institutions.

The remainder of 2026 is expected to remain challenging, with key risks including fuel price volatility, supply chain disruptions, aircraft delivery timelines, and regulatory pressures related to decarbonisation.

Croatia Airlines says its focus will remain on cost management, operational stability, and completing its fleet renewal programme, while continuing to expand its route network and support Croatia’s tourism and economic development.

Despite ongoing uncertainties, the airline’s strong passenger growth and strategic investments position it for more sustainable and competitive long-term operations.

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