Croatia Airlines has registered a net loss of 29.9 million euros during the first quarter of 2026, almost double the 15.9 million deficit recorded a year earlier. Its financial performance deteriorated despite a solid increase in passenger traffic, as a surge in costs significantly outpaced revenue growth. Although total revenue rose to 50.6 million euros, up 6% year-on-year, the improvement was insufficient to offset a steep rise in expenditure. Operating costs climbed 26% to 80.5 million euros, pushing the airline to an operating loss of 22.1 million, compared to 15.4 million in the same period last year. The gap between income and spending has widened notably.
Much of the cost increase came from external factors. Fuel expenses rose as a result of geopolitical tensions and the escalation of conflict in the Middle East, which drove up the price of jet fuel at a pace exceeding that of crude oil. At the same time, the carrier faced higher charges for airport and air traffic services, while maintenance costs increased alongside the growing complexity of its fleet. Depreciation expenses also rose with the introduction of new Airbus A220 aircraft. “Business in the first quarter of 2026 took place in a complex environment where both the effects of the fleet transition cycle and unfavourable external developments were present. These factors had a cumulative effect on operations”, Croatia Airlines said. The situation was further worsened by currency movements, with exchange rate losses linked to the stronger US dollar adding over six million euros to the overall loss.
Croatia Airlines remains in the middle of an extensive fleet renewal programme, which is placing additional strain on its short-term financial performance. The transition to A220 aircraft is intended to improve efficiency over the long run, but in the near term it is generating overlapping costs, including crew training, maintenance reserves and the simultaneous operation of different aircraft types. Delays in aircraft deliveries have further complicated the process, forcing the airline to retain older jets longer than planned and absorb additional leasing and maintenance expenses.
Equity, which turned negative during the second quarter of 2025, has returned to positivise territory following recapitalisation and direct state aid. Capital and reserves stood at 54.4 million as of March 31, 2026. As previously reported, operationally, the airline performed strongly, with this data available here.
Bravo OU!
ReplyDeleteBravo Hrvatska!
DeleteVo vjek i vjekova, bravo!
DeleteThe development in the middle East couldn't be a reason for anything in the first quarter taking into account when the conflict had started.
DeleteBS
If you take into account competition at the main hub HUB ZAG, Jasmin obviously overdid himself this time. Pressure from Ryanair and basically all the others airlines and still just 30 million loss. Nothing in comparison to reforms, new fleet and fresh management ideas!
Deletetell me you're running an airline into the ground without telling me you're running the airline into the ground
ReplyDeleteWho??
DeleteThey have higher costs than revenues??
ReplyDeleteThis is definition of a loss.
DeleteOparting costs should be at 30-40% of yr revenue and not 159%
DeleteTotally crazy
Bravo Hrvatska
ReplyDeleteSorry, wrote already before seen you were faster 🙂
DeleteRegardless of their bla bla external factors press release, their general business model seems faulty.
ReplyDeleteCan't remember when they've actually made any profit from operations.
Curious how this develops further in terms of the Croatian government being able to continue hanging on to this, well, botomless pit.
They should close the company and save money.
DeleteThere is no government in Croatia. It's tied Mafia and politicians. They are placing incompetent aparatchiks there deliberately. Their aim is not to have company which will connect diferrent parts of Croatia with which other and Croatia with Europe and World. Their aim is not to earn or save money. Croatia Airlines exists as Party entity, as Uhljeb sanctuary, as money laundry machine, and as a mean for small group of mafiosos to have huge personal benefits. Media in Croatia is absolutely silent about losses, crime and corruption there. Attorney General is mafioso himself and Party soldier. Therefore everything will remain the same and stoka sitnog zuba will continue to be silent and pay for their losses and theft.
DeleteHow do they launder money through OU?
DeleteLike any Mafia anywhere
Delete@PIR ...same everywhere!
DeleteOu has higher income, more pax and there is world crisis and war. Jasmin the Lion is great and this is only way. Now he will need to close lines within Cro and one or two more lines. Support our lion. Explain how money can be laundry in OU. OU is one the best companies in East Europe.
DeleteThere is always a crisis lately. For the past 21 years at least.
Delete🤣🤣🤣
DeleteTerrible
ReplyDeleteSve će to narod da pozlati...
ReplyDeleteRevenue 50mil, loss 30mil is diabolical.
ReplyDeleteAbsolutely. It seems the company really isn’t being run anymore - not just improperly, but not at all.
DeleteSo when do they expect the 7 new A220 this year? We are in month 5 and still not a single 220-300 got delivered, and there should be 6 this year
ReplyDeleteI heard some rumors that they canceled some of them (at least 2).
DeleteThey have taken delivery of two since the New Year.
DeleteNikad nisam razumeo šta je problen sa gubitcina državnih firmi? Sve su te pare kod nekoga završile. Gubitak je u stvari zarada..
ReplyDeleteYap.
Delete😅
DeleteTako mali Djokica zamislja avio biznis
DeleteTako mali djokica zamislja avio biznis.
DeleteGuys, this surely can’t go on forever right? Are we soon gonna be left with only two exyu carriers?
ReplyDeleteWhy not? Look at Deutsche Bahn- they had a loss of over 6 billion Euros in the last 5 years- it is a state company- the have different aims and serve different interests- of course OU would need to restructure to make money- maybe they will never- but I doubt that any other airline would fly routes that are vital for Croatia´s economy once the state carrier goes bust. Look where LJU is today.
DeleteLJU has connections to the most important hubs in Europe and not too few. What LJU is lacking, are LCC flights to leisure destinations, but it is definitely not bad connected. At least not much worse than during JP times.
DeleteWhere LJU is today? In a far better place than HR with not facing a bill for a hundred million euros for a useless flag carrier.
DeleteAlso don’t forget that since Adria died, SLO has achieved record GDP levels every year since then (apart from Covid). Also record number of tourists! Losing this “national carrier” didn’t even make a dent in the numbers.
Delete+1
DeleteLJU is actually very well connected transfer wise and is actually getting some interesting routes in the last year as well. (EDI, TFS). What we need is some LCC to open 5 - 10 summer and city break routes and we are good to go for now.
DeleteAdria 2.0
ReplyDeleteWhat is the difference between Slovenia and Croatia? Why is the EU allowing Croatia to still pump dozens of millions into OU, which since years generates millions of losses? I thought the EU doesnt allow government aid for airlines, at least not in a long term period.
DeleteBecause even EU has taken a lesson from Slovenia. They saw what has happened and what is still happening. NO national carrier means no to little air connectivity.
DeleteLittle air connectivity? Tourism is one of the main incomes for HR. At the larger coastal airports the market share during SUTT for OU is probably roughly 10-15%
DeleteYes, 11:00, Cyprus and Hungary are poorly connected right? Please. This is just dream-talking. And for us Slovenians, SLO is connected just fine. We’re just happy we’re not wasting 100s of millions for “prestige” that belongs in the 70s. Slovenia’s economy is still the richest by far in the ex-Yu, and the second most visited by tourists - 6 mil last year.
DeleteAnon@11:43 your post says more than you intended. This kind of mindset keeps Slovenia standing still. Very submissive mindset.
DeletePerhaps Jasmin could be replaced with Vedran Pavlek?
ReplyDeleteHahahahaha, dobar!!! 🤣
DeleteI bet their yearly reports look beatiful, as they have uhljebljen in house designer :)
ReplyDeleteCould they eventually become bankrupt?
ReplyDeleteOk, so it seems that OU Dosen no fuel hedging?!
ReplyDeletePoor leadership.
DeleteNot great, not terrible - kaze Baja
ReplyDeleteWait until Ryanair's current fuel hedging comes to an end. There will be no longer 20 euro flights!
ReplyDeleteEach time there is an article about OU I come here for PIR comments. Guy is relentless, does not give up.
ReplyDelete