Croatia Airlines reported mixed financial and operational results for the first nine months of 2024, impacted by an ambitious fleet transition to Airbus A220 aircraft. The substantial costs associated with the fleet upgrade, coupled with inflation and increased operational expenses, resulted in a net loss of nine million euros, a sharp contrast to the 7.1-million-euro profit reported for the same period in 2023. The airline's total revenue reached 206.1 million euros, close to 2023 levels. However, operating expenses rose by 9% to 215.1 million euros due to increased maintenance, leasing, and personnel costs. Croatia Airlines engaged in additional short-term leases to cover maintenance schedules, which, combined with inflationary pressures, led to an 11.6 million euro increase in operating costs.

Among the factors contributing to the airline’s increased costs was maintenance, where expenses grew by 8% to 33.9 million euros, primarily due to the transition of aircraft types and the operational challenges of managing two different fleet types during the transition. Additional aircraft leasing was necessary to maintain service reliability, adding to the overall expense. Passenger and airport service costs increased by 7%, reaching 44 million euros, attributed to increased passenger numbers, higher airport fees, and extended flight schedules. Croatia Airlines implemented a 10% salary increase beginning in April 2023 to offset inflation and attract skilled labour. A new five-year Collective Agreement signed this year further solidified these adjustments, impacting the company’s general and administrative expenses, which increased to 9.6 million euros.

The national carrier achieved growth across most operational metrics from January to September 2024. During the nine-month period, Croatia Airlines handled 1.424.916 passengers, representing an increase of .5.5% on last year, or an additional 74.679 travellers. However, the figure is still down 16.2% on the pre-pandemic 2019 or 276.655 fewer travellers. During the first three quarters of 2024, the carrier welcomed 1.046.208 passengers on international flights, up 6.9% year-on-year and 333.096 customers on domestic services, an improvement of 6.3% The remaining 45.612 passengers were handled on charters, down 21.7%. The average cabin load factor stood at 64.7%, down 1.2 points on last year and 9.1 points below 2019 levels.

Looking ahead, Croatia Airlines anticipates a period of financial stabilisation once the A220 fleet is fully operational, projecting lower maintenance and fuel costs. The increased passenger capacity and lower operating costs of the A220 are expected to improve profitability in the medium term. Additionally, the company’s expanded network and improved service offerings, such as digital boarding tools, baggage tracking, and in-flight e-media options, are anticipated to drive customer satisfaction and loyalty.