Croatia Airlines recorded a net loss of 38.8 million euros in 2025, marking its worst financial performance since 2020 when the aviation industry was hit by the onset of the coronavirus pandemic. The financial impact of its ongoing fleet renewal program continued to weigh heavily on results. The carrier generated total operating revenue of 269.4 million euros, up 6% on the previous year. Passenger revenue, which accounts for 84% of total operating income, rose 2% to just under 225 million euros. However, the growth in revenue lagged traffic expansion, reflecting what the company describes as “aggressive pricing strategies by competitors in conditions of falling fuel prices and exchange rate changes”, which impacted part of the income generated in US dollars.
Operating expenses rose sharply, increasing 13% year-on-year to 305.7 million euros. The largest increases were recorded in aircraft leasing costs, air traffic and airport service charges, maintenance and EU Emission Trading System CO₂ costs. Aircraft leasing costs alone surged by 14.4 million euros, primarily due to the induction of new Airbus A220 aircraft. Maintenance costs rose significantly as a result of transition-related expenses and extended lease obligations, while higher airport and navigation charges were linked to the deployment of larger aircraft and rising service prices. Transition costs linked to the fleet renewal were estimated at 21.2 million euros in 2025, up from 19.4 million euros the year before. Additional negative impacts included approximately 2.6 million euros in lost charter revenue related to developments in the Middle East.
The balance sheet expanded significantly, with total assets up 33%, driven by the addition of five new A220 aircraft, while cash reserves fell to 11.9 million euros at year-end due to heavy investment outflows and transition-related expenditure.
On December 23, the Croatian government adopted a decision approving an increase in the share capital of Croatia Airlines in the amount of 156 million euros. The decision involves a recapitalisation through the conversion of the state’s claims arising from shareholder loans, including accrued interest, totalling 85.9 million euros. Of this amount, 43 million euros was converted by the end of 2025, with the remaining balance following in January 2026. In addition, the government will inject 70 million euros in fresh capital, to be paid in two instalments: 35 million euros, which was paid at the beginning of 2026, and a further 35 million at the beginning of 2027.
Operationally, 2025 marked a year of expansion. Croatia Airlines carried 2.042.993 passengers, an increase of 11.1% or 204.384 additional travellers compared to 2024. The carrier operated 27.272 flights during the year, up 3.2%. The passenger load factor improved, totalling 66.3% across the year, compared to 65.1% in 2024.
Bravo OU
ReplyDeleteBravo Hrvatska!
ReplyDeleteOh, wait...
What a turnaround.
ReplyDeleteAnd what a surprise.
DeleteReserves down to 11 million. Yikes!
ReplyDeleteBasically had the state financial injection not happened at the end of last year, OU would no longer be flying.
ReplyDeleteExactly.
DeleteVery exclusive numbers !
ReplyDeleteExclusivity is all they are about
Delete"The largest increases were recorded in aircraft leasing costs"
ReplyDeleteYou don't say. I wonder what leases these could be.
I hope people now understand why the airline is launching just 2 new routes this year. It is in a financial mess.
ReplyDelete1. They launch odd services.
Delete2. If losing money, better not change anything. God forbid expand and earn more.
:shocker:
ReplyDelete2025 was a record year for airline profitability which makes this result even worse.
ReplyDeleteSo they got injected 35 million euros at the beginning of this year and the reserve they had left of 11 million means that have around 46 million total. The way they are accumulating losses and with the addition of new aircraft their losses will increase and at a faster pace meaning that it is unlikely that they will have enough cashflow to continue operations by the end of the year. Consequently the state will have to invest additional money or to move the second installment of 35 million euros to 2026, probably somewhere around November.
ReplyDeleteResults are terrible but a lit of this is one off costs. Not saying we will see green this time next year but losses won't be anywhere near this.
DeleteTerrible result. And absolutely no one held responsible over it.
ReplyDeleteSomeone needs to ask Bajić why he isn't resigning over this huge disaster.
ReplyDeleteHahahahahahahahaha
DeleteYou really expect him to resign? He is uhljeb and aparatchik. They don't resign. His boss Andrej Plenković capo dei tutti capi, had to change 38 ministers he personally appointed, from his governments in his 10 years of rule. Not one, not five, THIRTY EIGHT. For corruption, scandals, stealing public money, killing people... And he didn't even think about resigning. So, why would his protégé Bajić do it?
Delete^ well 34.42 of Croats voted for him...one gets what one sows.
DeleteNot a single soul voted for him. Because PM is elected in parliament by parliament majority. Parliament majority is constructed based on ridiculous electoral law, and political corruption and trade. He is product of simple fraud. Legalized, of course. Total number of votes of oppositional left and center parties were HIGHER than the number won by current parliament majority. So it's exactly the opposite of what you say - people DID NOT GET what they voted for
DeleteWell that can be said for many many many countries my friend. Doesnt change the fact that the party you dislike (and I do too) is very popular among the orindary man who dont give to damns about OU or flying.
DeleteDisaster
ReplyDeleteHello
ReplyDeleteThanks to the government I can sit here in Buzin drinking coffee knowing the ever faithful taxpayers keep me comfortable
Best
Jasmin B
The loss is worrying, but the fleet renewal was always going to be expensive. The A220 transition is a long term investment. The real question is whether Croatia Airlines can translate that into stronger yields once the old fleet is fully retired.
ReplyDeleteHow on earth are they gonna fill (profitably) bigger A220s when even with their DASHs they had a 60-70% LF in a price sensitive region?
DeleteI think they only way they can function is like Air baltic, leasing their planes to others.
Competing against Ryanair in Zagreb is not easy
ReplyDeleteActually for OU it’s very easy. Hello, government, we need another 20 mil from the taxpayers, who enjoy 25% VAT. Job done.
DeleteAnother year, another recapitalisation. At what point does the government ask for a serious restructuring plan instead of simply injecting more money?
ReplyDeleteCash reserves at just 11.9 million euros are extremely low. Without the state capital injection, liquidity would have become a serious issue.
ReplyDeleteAt least the loads are improving.
ReplyDelete66.3% load factor is still very low by European standards. Most network carriers are above 75-80%. This shows the structural problem isn’t just transition costs but also weak pricing power.
DeleteThe airline either needs more demand stimulation
DeleteThe Accounting trick with recapitalization I get, but isn't it illegal according to EU law to just pump cash into national carriers?
ReplyDeleteIf I were EU I would let them burn even more money this way :) As long as they don’t use it to actually expand business and market share, this is great for everyone. Except Croatian taxpayers ofc.
DeleteState support of 156 million euros is significant. Taxpayers will want to see results from this investment.
ReplyDeleteMost taxpayers don't even know about this bailout.
DeleteMafia is controlling most important media. In Croatia there is an absolute ban on criticizing OU. Every single "journalist" write about it in superlatives, creating image in public that they are super strong, super important, super capable and super profitable
DeleteTraditional media I get but there are more than few ways today to provide news and naratives different than controlled ones…
DeleteThis lot wouldn’t been lifting off the ground for a long time if there were no constant malversations from the government labelled as “dokapitalizacija”
ReplyDeleteTheir cost for available seat is 225 euros, compared to Ryanair's at less than 70 euros. OUs workforce per available seat is 5 times bigger than that of Ryanair's. But, the A220s will fix all of this.
ReplyDelete