Croatia Airlines sees losses soar to €50 million amid fleet transition and fuel cost pressures
Carrier dealing with complexity of fleet transition as it withdraws older models and shifts to A220s. Croatia Airlines' losses deepened substantially over the first half of this year, as the impact of fuel prices and exchange rates added to the cost burden associated with its fleet transition. It turned in an operating loss of €36.8 million ($42.4 million), which was 73% worse than the previous half-year, while its net loss came close to trebling at around €50 million. Although passenger numbers increased by more than 20% in the first five months – before declining in June – the improved revenue performance was checked by a "significant increase" in fuel prices, says the carrier. Croatia Airlines adds that negative exchange rates contributed heavily to a €16 million rise in net financing costs. The airline is progressing with a fleet modernisation, shifting to the Airbus A220, but is still feeling the effect of transition costs as it introduces the new type. It expects to have 14 of the 15 planned A220 in its fleet by the end of this year – with seven arriving in 2026 – while it gradually withdraws older aircraft from service. Croatia Airlines says the "simultaneous management" of a fleet with three different aircraft types presents an "additional challenge". "Such a structure requires precise resource planning, adaptation of operational procedures [and] increased co-ordination between organisational units," it states. "At the same time, the process of preparing aircraft for retirement from the fleet places an additional burden on the technical sector." Over the course of this year it aims to remove two De Havilland Dash 8-400s, an Airbus A320 and an A319. Two Dash 8s and an A320 were taken out last year, and returned to owners in the first half of 2026. "The fleet renewal project represents the largest strategic step forward in the history of Croatia Airlines and is crucial for the long-term sustainable development of the company," the carrier says. At the half-year mark its operational fleet comprised 15 aircraft: nine A220s, four A319s and two Dash 8s. The airline has also leased an ATR 72 since April to maintain its planned schedule. One of Croatia Airlines' A220 was subsequently damaged in a runway excursion in May, adding to the company's pressures. Croatia Airlines is also having to cover lease costs for two Dash 8s – registered 9A-CQC and -CQD – whose return to their owner has been delayed, owing to limited maintenance capacity and parts availability.