Croatia Airlines may be carrying more passengers than ever before, but its finances are telling a very different story.
The national carrier has reported a record half-year loss of €49.7 million, the biggest in its history, despite transporting almost one million passengers during the first six months of 2026.
The airline’s losses have almost tripled compared with the same period last year, when it posted a deficit of €18 million.
The figures reveal a striking contradiction. While passenger numbers climbed by 15 percent to a record 981,482 travellers, operating costs surged even faster, leaving the airline deep in the red.
Croatia Airlines says much of the financial pressure comes from its ambitious fleet renewal programme, with the gradual introduction of its new Airbus A220 aircraft increasing both operating and transition costs. Rising jet fuel prices, fuelled by growing tensions in the Middle East, also dealt a significant blow to the airline’s finances.
Revenue from passenger traffic increased by 11 percent to almost €105 million, but total expenditure jumped by 19 percent, outpacing income and widening the company’s losses.
The Croatian Government has continued to support the airline’s transformation, providing a €35 million cash injection during the first half of the year as part of a wider €156 million recapitalisation programme.
Despite the financial setback, Croatia Airlines insists demand remains strong. International passenger traffic rose by 18 percent, while overall seat occupancy improved to just over 66 percent.
However, the airline admitted that June proved more challenging. Passenger numbers dipped by 2 percent after a strong start to the year, reflecting weaker tourist arrivals in Croatia and increased fare competition from rival airlines.
@dubrovnik_times on top of Dubrovnik this Sunday #dubrovnik #croatia #adriatic ♬ Blue Horizon – Ocean Rhythm
While the financial headlines may appear alarming, Croatia Airlines maintains that the current losses are largely the result of planned investment in modernising its fleet, a strategy it hopes will deliver stronger long-term performance once all of its new Airbus A220 aircraft enter service.