Croatia Airlines is attributing a loss-making performance for the full year to the costs of transitioning to its new Airbus A220 fleet, as well as external pressures over which is has little control.
It points out that the first two A220s had been due for delivery before the summer 2024 season, but were “repeatedly pushed back”.
The initial aircraft only commenced commercial flights in early August, while the second was not introduced until December.
Its first 20 pilots – including five instructors – for the new aircraft type had to spend longer than planned undergoing simulator training, even having to repeat sessions, because of the delivery delays.
The carrier adds that, owing to training demands reducing crew availability, it could not fly aircraft at full capacity.
Alongside the A220s it has six Airbus A320-family jets and six De Havilland Dash 8 turboprops.
Croatia Airlines generated a full-year operating loss of nearly €16 million ($16.6 million) and a net loss of €19.6 million, in contrast to the profits recorded in 2023.
It says the fleet-replacement cycle is “characterised” by “operational and financial challenges”, and the carrier expected negative financial results.
But it adds that it also faced “significant cost exposure” in other areas.
These included prolonged maintenance for its Airbus and Dash 8 fleet, running to July 2024, arising from difficulties in the spare-parts supply chain.
Aircraft groundings which would normally have taken just 24h, it adds, took two or three days to resolve.
Croatia Airlines says the capacity problems forced it to wet-lease “significantly more expensive” aircraft to meet its flight schedule.
The carrier also hired an excess of pilots last year in order to ensure the largest possible number of crews for expansion of the fleet in 2025.
It trained 11 crews for the Dash 8s and an additional 11 were hired as first officers on the Airbus A319s and A320s.
Fleet transition has also resulted in expenditure in maintenance training, adaptation of IT systems, and procurement of spare engines and parts for the A220s.
Croatia Airlines adds that it, like other operators, has been affected by the geopolitical situation in the Middle East, losing some €1.5 million in revenues.
