Croatia Airlines believes the renewal of its fleet will establish a foundation for long-term sustainable development, but the company will have to bear the financial burden of transition.
The carrier started taking delivery of Airbus A220s in 2024 and expects to have seven in service by the end of this year.
Chief executive Jasmin Bajic says the renewal is the largest project since the carrier’s founding, and that the new fleet brings “numerous benefits” including increased financial efficiency and streamlined operational processes.
Croatia Airlines says it expected a negative result for the first quarter, given the “pronounced” operational and financial challenges “characteristic” of the transition.
It turned in an operating loss of €15.4 million ($17.2 million) for the three months to 31 March – some 50% higher than the same period last year – and a net loss of €15.9 million.
Passenger revenues were down 9% to €34.5 million, while operating expenses rose 7% to €58.3 million.
The company says that, unlike the first quarter of 2024, it did not need short-term aircraft leases to bridge a capacity gap arising from maintenance on its fleet as it awaited A220s.
Croatia Airlines has just received its third A220 – an aircraft leased from US firm Azorra – and expects four more of the type to arrive this year.
But it states that its A220 deliveries have “already been postponed several times” by the manufacturer and “additional delays” in delivery dates for 2025 were identified at the beginning of the year.
This uncertainty “complicates” operational planning, it says, and represents a “significant cost exposure”, owing to the possibility of flight cancellations and knock-on expenditure.
The carrier is planning to retire an Airbus A320 and two De Havilland Dash 8-400s this year, and the turboprops have been undergoing a major overhaul in Canada after reaching 40,000 cycles.
“Managing the operation of three different aircraft types in the fleet during the transition requires careful planning of resources and adaptation of operational procedures,” says Bajic.
“In addition to the acceptance of new aircraft, preparing old aircraft for retirement from the fleet places an additional burden on the technical sector.”
