Croatia Airlines recorded a net loss of 49.7 million euros during the first half of 2026, up from a loss of 18 million euros in the same period last year. It marks the carrier’s biggest half-yearly loss on record. Its operating loss widened from 21.2 million to 36.8 million euros. Operating revenue increased 12% to 125.4 million euros, supported by an 11% rise in passenger revenue to almost 105 million euros. However, total revenue, which also includes financial income, declined 2% to 129.1 million euros. At the same time, total expenditure increased 19% to 178.8 million euros, while operating expenses grew 22% to 162.2 million euros.
Croatia Airlines said its first-half performance was recorded in a “complex environment”, shaped by both the internal effects of its fleet renewal investment cycle and unfavourable external developments. The airline noted that the introduction of the A220 fleet between 2024 and 2027 entails increased operational and financial costs related to aircraft induction, the adaptation of processes and transitional effects from operating a mixed fleet. It added that these factors were placing planned pressure on profitability. The escalation of geopolitical risks in the Middle East from March, which prompted a rise in jet fuel prices, further weakened the carrier’s operating result.
Cash and cash equivalents stood at 21.6 million euros at the end of June, compared with 11.9 million euros at the beginning of the year. The company received a 35-million-euro cash injection from the Croatian government during the period, while the sale and leaseback of a spare engine generated a further 12.9 million euros. The wider recapitalisation approved by the government amounts to approximately 156 million euros, including the conversion of shareholder loans and another 35-million-euro cash payment planned for early 2027
Despite the weaker financial performance, the carrier handled a record 981.482 passengers during the first half of the year, representing an increase of 15%, or an extra 129.499 travellers, compared with 2025. International scheduled services accounted for 739.470 passengers, up 18%, or 115.371 travellers. The load factor on international services improved three percentage points to 66%, despite a 12% increase in capacity. Domestic scheduled traffic grew by 6%, or by 13.874 passengers, to 228.420. However, the domestic load factor declined by 0.3 percentage points to 64.2%. A further 13.592 passengers travelled on charter services, representing an increase of 2%. Charter operations accounted for 1.4% of the airline’s total traffic. Croatia Airlines’ overall passenger load factor improved by 2.7 percentage points to 66.2%. Passenger numbers fell 2% in June, ending the 21% growth recorded between January and May. Croatia Airlines attributed the reversal partly to a 7% decline in tourist arrivals in Croatia during June, adding that weaker demand prompted competitors to lower fares, which also negatively affected its revenue.
The airline operated 12.631 flights during the six-month period, up 2%, while block hours increased 5% to 17.648. Cargo and mail volumes declined 4.5% to 659 tonnes. Passenger yield declined 4% to 14.7 euro cents per revenue passenger kilometre, with the average gross fare falling 3%.
Bravo Hrvatska!!!!!
ReplyDeleteBravo Croatia Airlines!
Bravo Kradeze!
Bravo Jasmine!
Bravo stoka sitnog zuba!
Bravo! Bravo! Bravo!
Every year there is another explanation: fuel prices, competition, the pandemic, Zagreb Airport charges and now the mixed fleet. At some point management has to accept responsibility.
DeleteAnd not to forget that EVERYBODY wants to visit beautiful Dalmatia abroad one of those bright and shinys.
DeleteWhy should anyone take responsibility? The tax payer happily let's the government run useless enterprises
DeleteTourism
Deleteis less due to bsd value
for price: the planet offers countless beautiful places with better management…so NO need for Dalmatia
@10:12 you might have no need for it. But its remains a magnificently popular place for a reason.
DeleteBravo Hrvatska?
ReplyDeleteSpalionica državnog novca.
ReplyDeleteAgree. The government is putting €156 million into an airline that lost almost €50 million in half a year. Taxpayers deserve a clear explanation of how and when this investment will produce results.
DeleteThat equates to around 275.000€ per day. Unreal for such a small carrier.
ReplyDeleteAlmost €50 million lost in six months despite record passenger numbers. That tells you everything about the quality of the growth.
ReplyDeleteA load factor of 66% is simply not good enough, especially when competitors are regularly filling more than 80% of their seats.
ReplyDeleteA 66.2% load factor during a period that includes June is very weak. What will the annual figure look like once the quieter winter months are included?
DeleteMore passengers, more revenue and an even bigger loss. Something is seriously wrong with the cost structure.
ReplyDeleteNa prihode od 129 miliona EUR gubitak od 50 miliona EUR? Mislim da se ovako nešto retko gde može videti. Na svakom prevezenom putniku gube preko 50 EUR...
ReplyDeleteWith those LFs they've been basically flying half-empty planes.
ReplyDeleteThese financial results are thus no surprise
Interesting
ReplyDelete"Passenger numbers fell 2% in June, ending the 21% growth recorded between January and May. Croatia Airlines attributed the reversal partly to a 7% decline in tourist arrivals in Croatia during June, adding that weaker demand prompted competitors to lower fares, which also negatively affected its revenue."
Biggerst one yet.
ReplyDeleteI don't think they will have enough money at the end of 2026
ReplyDeleteOnce time again
ReplyDeleteThat's so unfortunate. Such a beautiful coast and so many tourists every year, yet the results are horrible. Yes, they got new aircraft but at what "cost" to the airline and all tax payers!
ReplyDeleteCan the management team really take responsibility for all these losses?
ReplyDeleteThey don't have management team. They have appointed incompetent, inert and uninterested aparatchiks, who obediently execute tied mafia and high politicians commands and decisions, in order for OU to remain LHG feeder while above mentioned tied mafia and high politicians enjoy benefits coming from surrendered market and percentage on aircraft lease contracts. Everything else is irrelevant
Delete"How did you go bankrupt?".
ReplyDeleteTwo ways:
"Gradually and then suddenly."
yup...but I still believe they'll be sold to someone before they would allow them to go under.
DeleteBut why would anyone buy them? No assets, no brand recognition and a dwindling market share even on their own turf.
DeleteTo whom? You can't sell an assent without any inherent worth. You can gift it, but for the Latin speakers among us it might become a damnosa hereditas...
DeleteThey need to completely revise both the network and the price strategy for the summer 2027.
ReplyDeleteRe-do everything, departure waves, operations, destinations everything.
Wishful thinking ey?
Indeed. But that is like telling a poor person to manifest being rich. Easier said than done given the points PIR highlights. The rot begins in the Party political nature of the airline which has thirty years' worth of root growth.
DeletePolako, Jasmin ima plan. Stabilizovace sve 2028, kaze, a verovatno 2029 ili 2030. Malo strpljenja i videcete Jasminovu magiju!!!
ReplyDeleteOut of 981.482 passengers, all domestic passengers (228.420) are subsidisied, which means they are not making any loss, but profit. That means that 753.062 are making loss. And even in those pool of passengers, many are actually subsidisied, since routes like Mostar and Osijek-Munich are heavily paid.
ReplyDelete