Croatia Airlines reports strong Q2 recovery with more passengers and routes

(Photo: S.Lugarov/Croatia Airlines)

ZAGREB, 4 August 2025 – Croatia’s national carrier Croatia Airlines continues its fleet renewal and expansion strategy, marking solid passenger growth and a significant operational recovery in the first half of 2025.

The airline carried a total of 851,983 passengers in the first six months of the year, representing a 5 percent increase compared to the same period in 2024. Domestic traffic saw a 6 percent rise, while international scheduled traffic increased by 4 percent. During the same period, Croatia Airlines operated 12,326 flights with a total of 16,767 block hours.

In line with its post-Covid strategy, Croatia Airlines remains focused on the largest project in its history – the complete renewal of its fleet. This investment, while bringing operational and financial challenges typical of a transition phase, positions the airline for long-term sustainability.

Although an operational loss of 21.2 million euros was recorded in the first half of 2025, the company posted a net loss of 18 million euros, taking into account financing results. However, EBITDA was positive at 2.5 million euros – maintaining the same level as the previous year. Notably, the second quarter showed strong signs of recovery. After recording a net loss of 15.8 million euros in Q1, the loss dropped significantly to 2.1 million euros in Q2. EBITDA improved accordingly, from negative 5.7 million euros in Q1 to positive 8.2 million euros in Q2 – a 22 percent increase compared to Q2 2024.

Total revenue, including financial income, was up by 8 percent compared to the first half of 2024. However, total operating revenue was 4 percent lower, influenced by aggressive pricing from competitors and lower fuel prices, along with a weaker US dollar exchange rate which affected part of the airline’s revenue.

Operating costs rose by 6 percent compared to the same period last year. The largest increase was in depreciation costs, driven by the inclusion of five new leased Airbus A220 aircraft. Depreciation alone accounted for over 84 percent of the total cost increase, rising by 5.9 million euros. Staff costs also rose following the signing of a new five-year collective agreement in July 2024. Additional staff were hired, particularly for flight and operational roles, to support the introduction of the new aircraft and the demands of the summer season. Inflation, a shift to larger aircraft types, and a 5 percent rise in passenger numbers also contributed to increased costs.

The airline continues to navigate challenges in aircraft maintenance due to global supply chain disruptions and limited availability of spare parts. This has delayed the planned return of two Q400 aircraft to their lessor. Managing a mixed fleet of three aircraft types during this transition period requires careful planning of both human and financial resources.

As of the end of June 2025, Croatia Airlines’ fleet included five new Airbus A220 aircraft. Two more are expected to be delivered by the end of the year. The new fleet supports improved passenger experience, enhanced efficiency, and environmental sustainability. These modern aircraft will help reduce fuel consumption and carbon emissions in line with global trends towards decarbonising air travel.

This summer, Croatia Airlines connects Croatia with 30 international destinations and 31 European airports. The airline operates 55 international scheduled routes. The addition of the A220s has enabled the launch of five new international routes from Zagreb – to Madrid, Milan, Hamburg, Prague, and Bucharest – and increased flight frequencies on existing routes from Zagreb, Split, and Dubrovnik.

Seasonal flights on the new routes began in early July and will run through to October. A total of more than 18,800 flights are planned for the summer season, up 8 percent from 2024. Croatia Airlines is offering over 2.29 million seats this summer – an 18 percent increase on last year.