Croatia Airlines has registered one of its biggest first quarter losses, as well as a decline in revenue and negative equity. In the first quarter of 2025, the carrier posted a net loss of 15.9 million euros, marking a 60% increase compared to the 9.9-million-euro loss reported in the same period last year. Operating revenues declined by 3% year-on-year to 42.9 million euros, driven by a 9% drop in passenger revenue despite a 2% rise in passenger numbers. On the cost side, operating expenses climbed 7% to 58.3 million, largely due to higher amortisation expenses (+67%) following the addition of two Airbus A220 aircraft to the fleet, as well as increased spending on personnel, maintenance and airport services. Staff-related costs grew following the implementation of a new collective agreement and the hiring of additional flight and maintenance personnel in preparation for the busy summer season.
Cash flow performance also deteriorated, with a net outflow of six million euros and a 13% drop in cash reserves to 38.8 million euros by the end of March. While total cash inflow slightly increased to 60.7 million euros, operating and investment outflows exceeded expectations due to prepayments for summer operations and maintenance reserves. On the balance sheet, total assets remained flat year-on-year, but equity turned negative at minus 14.4 million euros, driven by continued losses. Short-term liabilities surged 26%, primarily due to advanced ticket sales for the summer, while long-term debt remained stable, reflecting the strain of heavy investment during a financially challenging transition period.
Looking ahead, the company is counting on a strong summer season to improve its financial position. It plans to operate more than 18.800 flights, an 8% increase year-on-year, and offer over 2.29 million seats, which is 15% more than in summer 2024. The introduction of new routes from Zagreb and increased frequencies from Split and Dubrovnik are expected to drive revenue growth. The carrier emphasised that the successful integration of additional A220 aircraft and improved network performance during the peak season will be critical to stabilising operations and mitigating the financial pressure created by the fleet transition. “Taking into account the experience gained during the first year of the fleet transition, the company had anticipated a negative financial result for the reporting period”, Croatia Airlines concluded.
Another quarter, another loss. How long will this be allowed to go on before real change is made?
ReplyDeleteThey’ve been in trouble for years. This is just another chapter.
DeleteIt is a shame there is no reaction from the GoC to this. They run the company and couldn't care less. To them, the losses are symbolic and they feel no need to explain to the tax payer as to why he/she should cover it.
DeleteThere is no GoC. There is interest group, Mafia, criminal organization which is destroying Croatia, country and the company, for personal benefits. The air transport market of Croatia was handed over to LH. In order to remain so, criminal organization is deliberately placing incompetent aparatchiks to be OU "management". A220 as single type fleet is result of highly corruptive process, again in order for OU to remain LH feeder. Losses are irrelevant, they will be covered by "tiny tooth cattle". All losses and all misery in OU are produced with purpose BY "GoC" as you call them, or by Mafia which is appropriate term
DeleteThere is GoC. You spit nonsense as usual.
Deletemaybe its deliberate. bring down the company so that LH group can buy it for cheap with new fleet of A220 that OU did all the work to organise.
DeleteAt this point I would not be surprised if that was the case.
DeleteAs usual Slav. Man spread lies, A220 are leased not bought.
DeleteI think that majority of people do not understand this process at all. LH Group does not want and does not do anything in order to take over OU. It is not in their interest. If they take over OU, they would need to get it in order, up to standard with the rest of the group, pay people more than they are paid now and cover any losses. Why would they want to do that? At the moment, they have all the benefits of an extremely loyal feeder, they do not have to deal with the employees and their union, they don't have to invest into bringing up the standard and all the losses are covered by Croatian people. It is a win-win. You will see that they will never move in to take over unless forced by some other third party, and all the subsidies by the government, all the losses, Croatia will never have any issues with legality and EU rules - no one will ask any questions as long as Croatia happily pays to be LH feeder.
DeleteBravo Golub!
DeleteU sridu!
11.58
DeleteFormally, there is GoC.
Actually, in real life, and without pink spectacles, GoC is part of Mafia which is destroying both Croatia as a country and its airline. It is written in the text and not so difficult to understand unless one is blind or stupid.
Ohh please, it’s just first quarter. By the end of a year, OU will be profitable. They have done everything by the book, a220 is amazing aircraft and will make a lot of profits. It’s just matter of time before OU proves you wrong!
DeleteHahahahahahahahahahahahaha, yeah, like past 30 years. Greetings both to Buzin and Središnjica 🤣
DeleteThis guy just wouldn't shut it!
DeleteAs a taxpayer I am truly disgusted at how much public money is being used for this pet project. We cannot rely only on the summer season to bring us out of bankruptcy.
Delete+1
DeleteThis will either become a huge burfenon Croatian taxpayers or a new LH group addition
ReplyDeleteAbsolutely terrible and unsustainable
Thank God there is no more JP in SLO. Because this would have been even worse here.
DeleteMasochism is to pay OU debts with a smile from your pockets in Croatia and have master abroad.
DeleteSomething is seriously wrong with their business model.
ReplyDeleteTheir expenses are skyrocketing faster than revenue, and that’s a recipe for disaster.
DeleteAll while fuel is at it's cheapest in the last couple of years.
DeleteExactly. It hit a record low just the other day.
DeleteThey can fly as many flights as they like, but with a LF around 65% the results will always be the same.
ReplyDeleteIn Q1 load factor on international flights was 59%. Absolute disaster.
Delete^ They added shiny new planes but forgot they still need passengers
DeleteThe fact that their revenue declined while selling more tickets is a cause for concern
ReplyDeleteIt's baffling how they can carry more passengers and still make less money. Clearly their pricing strategy or load factor on key routes needs a serious review.
DeleteEverything needs a serious review
DeleteIt’s normal to take a financial hit during a fleet renewal. If they can get through this summer, things might turn around.
ReplyDeleteIt’s easy to blame losses on fleet renewal, but the problems at Croatia Airlines go much deeper.
DeleteThe A220 is a good move, but it won’t fix years of bad management and limited international presence.
DeleteA220 as single type fleet IS NOT good move for croatian market on which there are so many diferrent segments: domestic flights, regional operations, summer coastal operations, year-round european flights, flights for tourists and diaspora from distant markets. And you are right about "management" which in real life is bunch of incompetent and uninterested aparatchiks, deliberately appointed for OU to remain miniature irrelevant feeder
DeleteThe A220s are a great investment long-term but Croatia Airlines should've timed this transition better. You can’t keep burning cash and hope the summer will fix everything.
ReplyDeleteIt would be great investment if it was not single type fleet. It would be great investment if it was not used to feed others
DeleteIt would be great investment if your LF with smaller capacity aircraft was the worst in Europe
And it will burn more cash in order to fill LH planes and pockets on expense of croatian tax payers.
As simple as that
Was not the worst in europe
DeleteSingle type fleet is not a problem. Problem is not making profit.
DeleteSingle type is the problem because they will never make profit with it, given:
Delete1.diversity of HR market
2.lease price for the type
3.main role as LH feeder
Single type A220 fleet will only increase their debts and losses, and significantly
1. Market diversity has nothing to do with single type fleets. No airline ever decided to go for single type fleet because their market is not "diverse"
Delete2. Lease price is irrelevant in comparison to fuel and maintenance expenses
3. A220 doesn't cause feeding other airlines.
They should’ve aligned the transition with stronger seasonal cash flow. Or at least had a tighter cost control strategy in place.
Delete18.50
Delete1. So you suggest the same aircraft type for PUY-ZAD, DBV-AMS and ZAG-EWR?
2. We have already seen that lease price is not irrelevant because exactly the lease doubled the loss at Q1 25 compared to last year, with the less maintenance for 2 new "bright and shiny" and record low fuel prices
3. For this one, you are absolutely right, A220 doesn't cause feeding, it performs feeding, for peanuts, single-type, my point 100% proven
1. I suggest not flying any of these routes
Delete2. Oh yeah, because OU is doing everything perfect but lease rate makes them money losing
3. You can do feeding with a y aircraft there is
08.44
DeleteLOL
LOL because having state owned legacy airlines with 5 different types of aircrafts kn 15 jets proved to be really successful.
DeleteIn the meantime stupid LCCs are making huge profits with single type fleets.
LOL because legacies and LCC's have diferrent, uncomparable business models and go after diferrent market segments
DeleteLOL because except Air Baltic which is not even legacy but hybrid, and struggling, there are NO legacy carriers, not only in Europe, but worldwide, which are single type operators
LOL because ownership is not guarantee for anything - there are state owned airlines which are very profitable, and private ones which struggle and eventually go bust. It's not about owning, it's about managing, and OU is one of the worst managed airline companies in the World
LOL because you are desperately defending political highly corruptive decision on A220 single type fleet in OU despite developed and diverse croatian market screams and cries for regional, medium haul and long haul aircraft
LOL because single type A220 fleet will raise and increase OU debts and losses you pretend to be against
LOL because you have ZERO knowledge on commercial aviation and re-write pamflets already written in Središnjica
And the last, but by no means least, LOL once again because you are more than just funny, you are hilarious
LCCs are successful, while all small legacies are falling apart. Maybe it's because LCCs are stupid to order new gen jets and having single type fleets while Estonian, Nordica, Air Lituanica, ČSA, Malev, Adria, Croatia, TAROM.... are all successful?
DeleteLol who tf is defending OU? If anyone is defending you that's you with promoting idea of small legacy airline with no new gen jets and too much diversified fleet.
I am not promoting idea of small airline with 3 types. My point is for OU to become triple bigger. With 12 mil pax annually, and only 13 % market share there is demand, space and possibility for such development. And being against single type fleet, which btw IS political decision, fits into such development and into my point. But you are refusing to either accept or understand that. On the other side, what you are in favour, single type, and the most expensive one, is precisely what limits and makes impossible significant growth and development. You yourself said small legacies cannot or is extremely difficult to be successfull and profitable. That's why I want them to grow x2, x3. But with bright and shiny, there is no space for such immense growth. Not that hard to understand
DeleteSo planes need to be dirty and crappy for airline to do business properly? Sure.
DeleteWhatever you do, Croatian legacy will still be small and having small legacies, especially ones with old and too much diversified fleet, is not profitable at all.
If planes are not the youngest, even old, they don't have to be dirty and crappy. Once again you twist facts, manipulate and putting in my mouth words I didn't say.
DeleteAbout the last sentence : Air Serbia proves you wrong, with much smaller market and dozen of other disadvantages. Not to mention other companies little bit more far away as for example Luxair or Icelandair.
Your problem is that you just say something and believe and/or claim that's the dogma and unquestionable absolute truth. And you do it to move the focus from politcal influence, crime, corruption, nepotism and as a result huge losses in OU bigger and bigger year by year and day by day. No independent and objective person could be glad about OU being shameful feeder, having 13 percent market share and making huge losses which ARE becoming bigger, as we speak, due to single type, overpriced (with significant comission for certain individuals, maybe even you) and totally not suitable for croatian market. You are advocating crime, corruption and status quo in OU and no matter which arguments I give, or any other person gives, you will keep doing what you are instructed to do from Buzin and Središnjica. You can try to find thousand excuses, but the reason why you are here and trying to void everything I say in intervals not longer than 20 minutes speak for itself.
Air Serbia proves how terrible system you are proposing is.
DeleteWho tf is advocating crime? Are you sane?
If they don’t make a big turnaround this summer, we could be looking at a repeat of Adria Airways.
ReplyDeleteCroatia simply will not allow this. I believe that politics will be willing to sacrifice publicly owned airports, even pension funds, to save Croatia Airlines.
DeleteMaybe it’s time to privatize or seriously restructure. This kind of loss can’t be written off every year.
DeleteWhat a financial burden this company is.
DeleteHow are they even allowed to cover losses like this forever?
That’s a real concern. The warning signs are there. Rising debt, negative equity and no clear profit path. If summer doesn’t deliver, they’ll need more than route expansion to stay afloat.
DeleteNegative equity, rising costs, and falling revenue. Sounds like a textbook case of how not to manage a fleet transition.
ReplyDeleteIt’s not all doom and gloom. At least they’re preparing for growth and improving their network. The A220s will lower costs eventually, but they need cash flow now.
ReplyDelete1. Previous (entirely previous to be) Airbus 319/320 fleet with similar caoacity was OWNED. Current (entirely current to be) Airbus 220 fleet is LEASED. How can that lower costs?
Delete2. Dash Q400 fleet, which was LEASED, was with DOUBLE less capacity, turboprop and cheaper to lease than A220 fleet which is jet, bigger, and much more expensive to lease, and their LF , including DOUBLE smaller Dash is around 60 percent, the worst in Europe. How can that lower costs?
3. They didn't change strategy, their basic goal is remaining to be feeding LH for peanuts. How can that lower costs
4. There were also NO personal changes - proven incompetent "management " is still in charge. How can that lower costs?
5. And yes, in OU it is all doom and golom, they made it and they deserve it
Hope they don’t start jacking up summer fares to cover this mess. Tourists are already feeling the pinch in Croatia.
ReplyDeleteLosing nearly 16 million in Q1 alone? Imagine what the full year will look like if the summer doesn’t deliver big.
ReplyDeleteRyanair's plan in Zagreb going well.
ReplyDeleteIt has nothing to do with Ryanair. It has to do with ties of highest politics and Mafia, where for benefits of few people entire market was handed over to LH. There is enough space in Hrvatska for Ryanair and OU and others. OU disastrous results, financial and all others, are not because of FR in ZAG or anywhere else but because if their own incompetence, inertness, wrong strategy or no strategy at all, crime and corruption, and all of above is deliberately caused, for personal benefits of few mafiosos
DeleteWell, Ryanair knows about the corruption and incompetence and they also know the government will not be able to pump money into Croatia forever. Ryanair only acts as a catalyst here for the inevitable while securing a favorable position for themselves and future negotiations with the airport and the government.
DeleteRyanair securing favorable position for future negotiations, with that part I fully agree - they wouldn't be successful business if they acted the other way round. The first part, I disagree, because it is absolutely not certain that OU would go bust, either the things remain status quo and the ways are found for funds to be pumped in, or if professionalization, change of strategy and real growth happen, for which real need exists and which is not impossible. Ryanair is aware that Croatia Airlines, weak as it is and assisted or stronger and independent, will be around in Croatia and they count on it. The same way they exists in Sofia alone Bulgaria Air or Greece along with Aegean. The same way Wizz exists in Belgrade along Air Serbia and in Hungary along with Wizz. Air traffic is vast field with space for everyone. And it's growing. Why you want to make Zagreb/Croatia exception to that pattern, remains unclear to me
DeleteWanted to write Tarom in Bucharest along with Wizz, wrote Hungary, my mistake, corrected
DeleteCan EU finally stop this BS?
ReplyDeleteThey should. Like they did it with Malev, Cyprus Airways, Estonian...
DeleteNo they will not. Malev, Cyprus and Estonian weren’t loyal LH Mutti feeder
DeleteI don't think they will.
DeleteSo, I here a lot of talking about mismanagement and blaming this and that.
ReplyDeleteIn your opinion, what should structurally change in order to bring profit and how to do that?
Deuhljebization
DeletePrivatisation ASAP.
DeleteNot enough space and time to wtite everything. But, briefly, TOTAL RESTART which would include professionalization, changing the main feeder role,
Deletechanging idiotic and corruptive single type decision
building (doubling or tripling) of its network including much more regional,
starting with marketing, now non existent.....
If this is what “planned losses” look like, I’d hate to see what surprises they weren’t ready for.
ReplyDeleteThe reason this fleet transition is so costly it because the company was not healthy when it started this process. Going in to this process expecting the A220 will fix all your problems like poor network, poor connecting schedule, poor load factor etc is nuts.
ReplyDelete+1
DeleteExactly. The A220 is a great aircraft, but it’s not a magic fix. If the fundamentals like network strategy, pricing, and connectivity that aren’t solid. No plane can turn things around on its own. This transition should have come after strengthening the core business.
DeleteAy caramba
ReplyDeleteSmall countrys are too small for a national carrier. Even SAS have had economic problems for many years.
ReplyDeletePortugal? Belgium? Greece? Serbia? Bulgaria? Not much bigger than Croatia. And what about Luxemburg, Latvia, Malta, Cyprus.... They all have national carriers, and all of them are more successful and/or less loss making than OU.
DeleteAnd SAS is totally incomparable comparison
Croatia population 3,8 million. Portugal, Belgium, Bulgaria 10 million, Serbia twice the Croatian. Swedes flying to the Croatian coast fly charter or with Norwegian, not with an "national carrier". Taxpayers are tired of paying for airlines (SAS) that don't make a profit. SAS will go the same way as Slovenian "national carrier".
DeleteFew mil more or less, still small countries. Why don't you comment on double or triple smaller ones which have functional carriers, which is original idea of your post? And you are totally wrong because both big and small countries are very much diferrent within the group: even big country might have not the market and need for national airline. On the other hand, small one, with market and potential might have need for an airline, which is the case with Croatia, with its position, tourism and diaspora. Deliberate and definite failure, which Croatia Airlines is, does not mean that the country does not need flag carrier. It does, but the one which will take advantage of market potentials, which will have much more than 13 percent market share, and which will not be loss making. And once again, SAS doesn't fit into this story because no parallel could be drawn between entire Scandinavia on one and Croatia on the other side
DeleteI think what the diaspora cares about is the price and not which airline they fly with. Service is also not that important within Europe considering the short distances.
DeleteNegative equity means you have more liabilities than assets, ie you are technically bankrupt. Wi EU allow a bailout or will they go the way of Adria into history?
ReplyDeleteAnd who will be an airline which is a perennial loss maker. The Government would need to pay someone to take it over. Perhaps sell it for 1 euro?
ReplyDeleteOne Anon explained it as it is. OU is and will be LH 'feeder' period. This was probably agreed even during CRO independence as some kind of political trade off as OU is a symbol of Croatia. So it will NOT go down as Adria, it will be supported by taxpayers indefinitely even if HDZ lose power, OU will be as it is. Sad but true.
ReplyDeleteIm done commenting this loser airline ...............
ReplyDeleteWe need McKinsey or BCG or Lufthansa Consulting NOW !
ReplyDeleteWhy doesn't Croatia Airlines fly to Belgrade?
ReplyDeleteBecause they have no transfer destinations to offer
DeleteBecause they have no propper waves
Because they are focused on MUC and FRA to feed LH
Because they don't care
There is more, this is just for starters
Since most of you do not follow the news, just to mention that Pratt and Whitney workers started their strike.
ReplyDeleteRegarding Greece there is a Nr.2 and that is Skyexpress with 12A320 Serie and 15ATRS. Both werde last Year profitable. And just to remind that A3 was in talks about OU and they distanced from that story. Volotea was on the table for Lufthansa and two months later A3 got a stake beginning with 12% and it is going to 25%.
ReplyDeleteGood luck with tourism this year, here in Amsterdam no one will go to Croatia this year, after the last year and the crazy prices over there, why go there where you can get way more for your money in other countries? The ones that come this year, wont come back next year :/
ReplyDeleteHahahahaha I remember the same poster writing the same BS already. My friend, KLM has 7 daily flights to Croatia, Transavia 2, and Croatia 1. Dutch cars and campers, one out of four on HR roads. Dakle, NDJG
DeletePlus Easyjet, Ryanair, TUI...
DeleteUhu right :) That's free young peepz who are going there for the first time, all the rest who went to croatia for 20-30 years are skipping the country? Why tell me ? No one is a idiot, buying ice cream in Dubrovnik for the double price of Amsterdam, wich is a rich and expensive city. HR = killing it self this way, and the tourism
DeleteCars and vans are not young peepz, usually middle aged, families, and older. Young peepz mostly go low cost, but explain me how come KL and HV are increasing flights compared to last year. Therefore, NDJG, once again
DeleteWhat an absolute disaster
ReplyDeleteYou can say that again
DeleteMaybe time for new leadership.
ReplyDeleteLong overdue
DeleteWould love to see load factor and RASK/CASK figures to understand what’s really happening here.
ReplyDeleteWhat would that show?
DeleteChange isn't instant. Fleet renewal and network expansion take time to pay off. The real question is whether management can actually deliver results this summer.
ReplyDeleteNo, they can't
DeleteManagement? You mean appointed aparatchiks? Uhljebs who get paychecks for "work" on posts non existent in any other airline? Jasmin waiting retirement? OU does not have Management. That is the first, major, basic, ground, elementary and main issue
DeleteNegative equity is a serious red flag. It means the airline owes more than it owns. Basically running on borrowed time unless they can reverse the trend fast. Summer performance alone won’t fix a balance sheet this deep in the red.
ReplyDeleteEU funded restructuring is coming. Mark my words.
DeleteMost likely
DeleteI'm guessing the annual loss will be around 30 million
ReplyDeleteBest case scenario
DeleteWith two more bright and shiny Intergalactic Spaceships coming, my estimation is 35-40 mil
DeleteWas to be expected
ReplyDelete