Croatia Airlines, which has posted losses in all three quarters so far this year, said its negative financial performance is in line with expectations and is likely to persist for some time. The airline acknowledged that the fleet renewal program, which will see it become a single-type operator, is temporarily inflating expenses, but represents “the foundation for long-term sustainable operations.” The carrier's management underlined that the introduction of the Airbus A220 fleet would lead to “simplification of operational processes, improved financial efficiency and environmental sustainability”.
By October 2025, the airline had received seven A220s, with additional deliveries expected in 2026, when another four to five aircraft will join the fleet. The management noted that delays in A220 deliveries have been a key operational risk. By mid-2025, total delays had surpassed 62 months compared to the original delivery schedule, leading to increased leasing costs and seasonal capacity challenges. These disruptions, according to the company, forced later new route launches and added pressure on technical and human resources. However, Croatia Airlines said the A220 program remains its strategic priority, calling it the “largest project in the company's history.”
In its financial outlook, the airline indicated that short-term losses are expected as part of the transition, with liquidity “carefully managed through cash-flow projections and cost optimization measures.” The carrier confirmed that it planned negative results for this stage but is confident that the long-term benefits of the new fleet will offset transitional costs once the renewal program is completed. Croatia Airlines also stated that it continues to rationalize operations and adjust capacity according to market demand and booking trends. The company said it “actively applies different internal forms of rationalization and control of operations” and is optimizing its flight schedule to adapt to current market conditions.
Croatia Airlines emphasized its commitment to maintaining national connectivity while expanding international reach. Following five new European destinations introduced in 2025, the carrier plans to continue expanding its route portfolio from Zagreb and the coast once additional A220s arrive. It also highlighted digital and service improvements, including online seat selection, PayPal and Google Pay integration and Wi-Fi on new aircraft, as key parts of its modernization roadmap.
I don't think there will be this magic turnaround they expect.
ReplyDeleteThey have been saying the same thing for 10+ years. Always “investment now, profit later”. When is the “later” supposed to come?
DeleteHehe
DeleteCroatia Airlines needs to use the A220s to actually grow, not just swap out old aircraft one-for-one. The whole point of the A220 is that it makes thinner, medium-distance markets viable. So use that advantage: open unique high yield routes, build proper year round connectivity from key coastal airports, and create a smart regional hub strategy around Zagreb that feeds into major long haul alliance partners. That’s how these planes pay for themselves. If they just fly the same old routes with nicer aircraft, nothing changes financially.
DeleteIt does, actually - the losses increase.
Delete@anon9:03 later :-D
Delete@anon10:38 obviously. But, do you think they understand that? Like, can the management comprehend it?
DeleteLost for words...
ReplyDeleteRestructuring in a year
ReplyDeleteRemind me when did this carrier of a country relying on tourism last post a decent profit? How about some decent yield management to up the abysmal 66% LF before getting bigger planes?
ReplyDelete62 months of delays. Wow
ReplyDeleteI guess that is why they didn't start the new routes till July.
DeleteThe company can make statements as they please, but the load factor speaks for itself. Paypal and Google Pay wont fix that.
ReplyDelete+1
DeleteThey talk about digital improvements like it’s something revolutionary. It’s literally basic hygiene in 2025.
DeleteSo every quarter is a loss, but “this is expected”. For how long exactly is loss an acceptable business model?
ReplyDeleteAt least they are being realistic about the short-term financial impact. Better to invest heavily now and reap the benefits later.
DeleteThis “two or three years” promise was also used in 2012, 2015, 2019… we’ve heard this many times.
DeleteThis is the last chance. If the A220 fleet cannot finally bring stability and profitability after it’s complete, then nothing will.
ReplyDeleteWhy would A220 fleet bring stability? It can only bring instability, but also perfect aircraft for them as it gives them unlimited excuses.
DeleteThe problem is not the planes. The problem is that Croatia Airlines doesn’t know how to generate demand. You can’t fix that with new aircraft.
ReplyDeleteExactly. The A220 is more economical but look at airBaltic. Even with a modern fleet they still struggle with profitability. Fleet isn’t everything
DeleteThey need to join a bigger ecosystem. A proper JV or a full takeover by Lufthansa or someone big would solve 90% of these problems overnight.
ReplyDeleteLufthansa isn't the answer. They are destroying Austrian and Swiss to save their Mainline operations.
DeleteAlso, Swiss and Austrian are bigger than whole ExYu market combined. I don't think Lufthansa would even bother for something this small.
Deletelol again the bullsh*t about destroying Austrian and Swiss. Austrian is PROFITABLE
Delete2024: Swiss has a 12.4% margin, Eurowings 4,5%, Brussels 3,8% Austrian 3,1%
“Largest project in company history” means nothing if it doesn’t lead to profitability. At the end of the day the scoreboard is negative.
ReplyDeleteI don’t understand how an airline can frame constant losses as “in line with expectations”.
ReplyDeleteMe neither.
DeleteThis is exactly what happens when politics controls airlines. No real business discipline and no accountability.
DeleteCroatia Airlines must stop thinking like a state utility and start thinking like an airline that actually needs to compete for passengers.
DeleteIf the load factor is 80+% and you’re still losing money, you can blame the current inefficiencies on having multiple aircraft types, the transition, and so on. But this isn’t the case. This is simply distracting from the real problem: incompetence and poor management.
ReplyDeleteEveryone keeps talking about the A220 like it’s a magic wand. It’s still the same airline, with the same management, same strategy and same market position.
ReplyDeleteNot everyone, Just OU's management
DeleteAnd at least one more An. guy, here either on Party duty, or from Bizin uhljeb position, or simply brainwashed, who constantly writes about OU in superlatives, and advocates all of their crime, corruption, incompetence, inertness, laziness....
DeleteNo one expects miracles but at least show some ambition. Announcing five small European routes a year is not strategic expansion
ReplyDeleteMeanwhile, Ryanair and easyJet are growing in Croatia every year without any largest project in history. They just run an efficient business.
ReplyDeleteTheir biggest problem is leadership complacency. Airlines with weaker markets have done more with less.
ReplyDeleteBad mouth will say this is bad. We say, let them trash talk.
ReplyDeleteSoon, OU will be back on feet with healthy organic rise!
😂
DeleteThis time next year we'll be millionaires
DeleteHahahahahaha
DeleteTransition is painful, but this is exactly the right time to invest. In two or three years, this could look like a completely different airline.
DeleteGood joke!
DeleteIt could, but it won't.
Delete@anon9:33 are you serious?
DeleteHahahahaha, I just posted above. This is the guy I've just talked about 🤣
DeleteI am OP, just as I wrote. bad mouth and trash talk. What can you expect from this type of mentality. I didn't write it's gonna be in a year or so, it's gonna be in foreseeable future, like 3-4 years it needs to pass so everything gets established. Maybe even new management decides to switch most of action to coast, abandon the capital and then lease planes by winter to latin america or something like that.. but those planes are and will be game changer.
DeleteThe A220 story could be a success but only if they pair it with a totally different commercial mindset. Otherwise it’s just new paint over old thinking.
ReplyDeleteBingo. If your network is dull, the plane doesn’t matter.
DeleteI don’t mind an airline losing money while it’s growing.
ReplyDeleteBut its numbers are barely growing. 5 new routes, lots of new capacity and passenger growth of a couple of percent.
DeleteIf you put their "growth" in parallel with general growth of aviation both worldwide and especially in Europe, the conclusion is exactly the opposite of what you write- they are lagging behind more and more, day by day, literally. And every single person knowing the first thing about aviation can confirm it. Growth exists only in some heads in Buzin and in Središnjica propaganda
DeleteThis transition never ends.
ReplyDeleteIt only just started...
DeleteBuckle up
DeleteCroatia deserves a strong national airline. But this management never showed how to actually win market share.
ReplyDelete+100
DeleteNext big story OU related will be a 30 to 50 million Euro cash injection by the government.
ReplyDeleteWithout doubt
Delete30-50M won't save them. They need 100-120 just to stay afloat by 2028.
DeleteThis is the first time in many years that Croatia Airlines actually has a clear direction: one type fleet, lower costs, better product. It’s the only way forward.
ReplyDeleteone type fleet, lower costs, better product, same shitty network, no marketing, shitty prices,...
DeleteAt the market as croatian is, single type fleet is the final nail in the coffin. Unless some spectacular changes happen, which is not even remote possibility
DeleteThis is their chance to rebuild the brand. People will notice the difference on board. And that matters. New aircraft can change passenger perception dramatically.
ReplyDeleteWho cares if the engines are quieter if the seats are empty and the airline keeps bleeding cash?
DeleteNew planes don’t rebuild brands. Good pricing, strong schedule, consistency and reliability rebuild brands. A220 is not a magic marketing trick.
DeleteThe fact that they produced a loss in Q3 is terrible. Total loss will likely exceed 30 million this year. They have accumulated over 150 million in losses in the last few years.
ReplyDeleteNext year, on top of payments for the A220s they will have to start making payments for turboprop wet lease.
ReplyDeleteSince they will have a long term deal, they will probably be able to get a good price for their wetlease.
DeleteThe A220 gives them range and efficiency. Use it to go after niche underserved European capitals and capture point-to-point demand, not just fly the same old FRA/MUC/ZRH rotation.
ReplyDeleteWhat was the purpose of that restructuring 10 years ago? It didn't bring anything. The airline is still loss making.
ReplyDeleteIt has been more than 10 years and the purpose was for the government to legally bail them out. You will see something similar happening again in a year or two.
DeleteI wonder if they will privatize OU
ReplyDeleteWith the amount of payment obligations they will have in the next few years, I'm not sure anyone would want them. On top of that, the market has been completely won over by the likes of Ryanair.
DeleteThere was a chance before Covid with Aegean. But the process took too long and then Covid hit and its hit OU hard. Aegean went for Volotea instead.
DeleteI'm not defending them but any transitional period is difficult. We will if they are able to make something of themselves when all the A220s arrive.
ReplyDeleteThe thing is, they were loss making before the transition as well
DeleteThats why this is their excuse now. When they change the fleet there will be no loss like before, before it was due to high operational costs of the old A319s like they say. Whatever plane you operate, if u operate it half empty 90% of the time you will be in loss. Thats the reallity.
DeleteMy expectations are the same
ReplyDelete"inline with expectations" is the new "too early"
ReplyDeletejust lower the ticket prices
Until Croatia Airlines makes enough profit in the next years to cover all of these losses it will be again time to change the fleet, cause 20 years will pass, of course if the airline still exists until then.
ReplyDelete"carefully managed through cash-flow projections and cost optimization measures.” empty office buzzwords from empty heads at buzin. Good job copypasring stuff from linkedin guys (not author of the article, but croatias management)
ReplyDeleteWho sells them jet fuel? They are, technically, already bankrupt. Remember Adria Airways!!
ReplyDeleteOU deserves special edition of Alan Ford
ReplyDeleteCool.
DeleteBravo Croatia
ReplyDeleteOn what?
DeleteBCG did a great job.
ReplyDeleteI don't get how they are still liquid, they are constantly losing money, how do they pay for anything.
ReplyDelete