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?
ReplyDeleteJasmin used to be my boss and he is hands-down the best manager in Croatia, the airline's multi-million euro losses have absolutely nothing to do with him or his flawless expertise
DeleteSpalionica 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.
DeleteSpalionica privatnog novca otetog poreznim obveznicima da bi se i dalje bogatile Švabe i nekolicina pojedinaca iz hrvatske "elite"/šljama
DeleteWhen viewed from the perspective of having a national carrier the amount of money is nothing and can easily be compensated by the government. Have no illusions, having the flag fly on the national carrier is of significant importance and can easily be classified a national interest.
DeleteIf its of national interest how about releasing it from the control of party machine and fools and letting it be run by professionals?
Delete17.43
DeleteEspecially when the flag on the flag carrier can be seen almost exclusively at Vrankvurt and Minken
That 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.
ReplyDeleteNo, it's telling only of their business model.
DeleteOni to imaju? Mislim, poslovni model?
DeleteA 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?
DeleteLoad factor had nothing to with it.
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...
ReplyDeleteSomething to add to this calculation... Their largest competitor in ZAG, Ryanair, carries around 200m pax per year. If Ryanair lost 50 EUR/pax, they'd make a loss of 10bn EUR at the end of the year.
DeleteThis is the area of financial disaster OU currently operates in.
With 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!
ReplyDeleteBut they are only renting them. They own sweet FA
DeleteCan 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...
DeleteYou cant put a cherry on a turd. OU is worthless
Delete^ one of the great English-language expressions.
DeleteAt the end good old JU will be the only left over in ex YU....
Delete^ Although there is an argument to say that it already is the only left over of the EX-Yu as OU was formed in August 1989 although its formative period was far later post '95. Or you mean the only national airline in the EX-Yu space? ..which is very true and given the very tough time of it for airlines in the former communist space I think JU and LO are the last vestiges of functional companies whose formative years were under communist/socialist rule.
DeleteSell it to whom, for how much?
DeleteEven if the sale goes through, it'd be like with Adria and 4K. Essentially you pay someone to liquidate the company for you.
They 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.
DeleteThey can't even fly to FCO nonstop. They are never going to develop proper waves at ZAG. It's too early
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.
ReplyDeleteShit show!!!
ReplyDeleteSomeone should put them out of their misery. Please end this horror!
ReplyDeleteOne-way ticket to Switzerland, if you catch my drift.
DeleteThe prime minister does all he can to become next Ursula
ReplyDeleteThe Prime Minister's ilk have been ruining OU for decades.
DeleteLooking forward to 2028
ReplyDeleteWhat will they do in new covid ?
ReplyDeleteOU actually had its best financial performance in years in 2020 because their planes were not flying. So you can imagine how bad the situation is if they make more money when they are grounded than not.
Delete@130:03 what on earth do mean?
DeleteWell, imagine it appeared again. What would OU do then?
DeleteA country among top 5 in tourism earnings per Capita in the world can't run a profitable airline...
ReplyDeleteFor how long can they actually go and lose money? What is the breaking point like it was with Malev or Adria?
ReplyDeleteWould be interesting to know, how much of capital injection JP had and how much OU
Delete