Croatia Airlines recorded a net loss of 19.6 million euros in 2024, marking its worst financial performance in three years. The figure is in contrast to 2023’s profit of two million euros. Although the carrier’s financial performance improved compared to the pandemic-inflicted 2020 and 2021, its loss was higher than during the pre-pandemic 2019, as well as 2022, which was still impacted by global travel restrictions. The loss was primarily due to increased operational expenses which surged by 9% to 271.1 million euros, compounded by the costs associated with the delayed arrival of its first two Airbus A220-300 aircraft, as well as short-term aircraft leases and increased maintenance demands. These expenses overshadowed the 6% increase in passenger revenue, which rose to 220.7 million euros, driven by higher passenger volumes but insufficient to offset the overall rising costs, including those from a new collective bargaining agreement which pushed up employee wages.
Croatia Airlines’ liabilities from three shareholder loans amounted to 78.8 million euros as of December 31, 2024. The company’s cash position at the end of the year stood at 44.8 million euros, down from 79.1 million euros in 2023, reflecting substantial investment outlays and considerable expenses for its transition towards an all-A220 fleet. The airline noted it faced increased operational risks in 2024 including disruptions in supply chains and availability of spare parts, impacting aircraft maintenance schedules and delaying new aircraft deliveries. Furthermore, regulatory costs rose due to compliance with passenger rights regulations, regional environmental initiatives and accessibility requirements.
The Croatian flag carrier handled 1.838.609 passengers in 2024, representing an increase of 6.1% on 2023. However, the figure is still down 15.2% on the pre-pandemic 2019. The airline’s average annual cabin load factor stood at 65.1%, slightly down on the 65.3% load the year before. In 2019, its average cabin occupancy rate stood at 73.5%. Croatia Airlines increased its number of flights by 1.8% year-on-year to 26.438, while uplifting 1.409 tons of cargo over the same period, down 7.5% on 2023.
Commenting on its performance in 2024, the airline said, “The fleet replacement investment cycle initiated in 2024 was marked by operational and financial challenges associated with the transitional period, and the company anticipated negative financial outcomes for this phase. These challenges and significant exposure to costs, arising from factors largely beyond the control of Croatia Airlines, impacted the company’s business results for the year 2024”.
