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.
