Delays With Croatia Airlines Base Maintenance Create Losses

Croatia Airlines says significant base maintenance delays have affected its financial results by limiting aircraft availability and third-party work for other airlines.

An unplanned extension of the base maintenance season for Croatia’s Airbus fleet until July 9 and De Havilland Canada Q400 fleet until July 2 required the engagement of additional and significantly more expensive short-term wet-lease aircraft so the carrier could maintain its planned schedules, preserve airport slot allocations and “uphold passenger trust,” a Croatia Airlines spokesman told Aviation Week Nov. 5.

Croatia operates under seasonal conditions so every aircraft that is not available during the European summer peak affects the bottom line.  

The carrier said the extended maintenance work also caused reductions in hangar availability for third-party maintenance services.

“Compared to the original plan, technical service revenues (third-party business) are down by €4.1 million [$4.4 million] and 32% lower than in the same period in 2023,” the spokesman said. “Increased aircraft maintenance and short-term lease costs compared to the same period in 2023 amounted to (a loss) of €11.6 million, which exceeds the net loss reported for the January-September period.”  

Looking closer at the financials, a net profit of €947,000 was generated in the second and third quarters of 2024, but the overall net loss for the January-September period stands at €8.98 million due to a decline of €9.92 million recorded in the first quarter, during the period of low demand. In contrast, the airline reported a €7.1 million profit for the same period in 2023.

In the first nine months of 2024, the Star Alliance member transported 1,046,208 passengers on international flights, up 6.9% year-on-year, and 333,096 on domestic services, an increase of 6.3%

A220 Deliveries

Croatia’s fleet comprises one A220-300, one A320, five A319s and six Dash 8 Q400s. The Zagreb Airport-based carrier is set to undertake a fleet renewal that is expected to see the A319s and Q400s replaced by 15 A220s—a mix of -100s and -300s.

The airline began A220 operations on Aug. 6. Delivery of a second A220 is expected by year-end, with three additional aircraft scheduled for delivery before the peak of the next tourist season.

“This will facilitate further growth for the company, including the expansion of our network of destinations and an increase in available seating capacity,” the spokesman said.

CEO Jasmin Bajic told Air Transport World in a recent interview that the A220 is a key element in a strategy to make the company more efficient, improve customer satisfaction and allow the airline to expand its domestic and international networks.

“In the long term, we are also considering additional aircraft types, such as the A321-200XLR. We continuously analyze new aircraft and opportunities; that’s our approach,” the spokesman added.