Croatia Airlines turns in first-half loss but expects benefits as new A220s arrive

Croatia Airlines is expecting to introduce a second Airbus A220 in December, having newly taken delivery of its first at the end of July.

The carrier is replacing its current fleet of 12 aircraft – comprising two A320s, four A319s and six De Havilland Dash 8-400s – with 15 A220s by 2027.

Croatia Airlines, in a first-half financial disclosure, says the transition period to the beginning of fleet replacement has been characterised by “increased cost exposure”.

“In order to carry out the planned flight schedule, it was necessary to hire aircraft in the short term,” it states, adding that the leases were needed to bridge Airbus fleet maintenance.

Over the first half Croatia Airlines generated revenues of €116 million ($125 million), up 3% as passenger numbers increased by 5%.

Although the airline was narrowly profitable in the second quarter, it posted net loss of €9.5 million for the six months ending 30 June.

The carrier notes that increased costs of €10.4 million linked to the short-term leasing, as well as higher maintenance expenditure, exceeded this loss figure.

Croatia Airlines says its securing of slots at airports and investment in new routes will produce benefits when the a larger number of A220s is put into operation next year.