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The number of passengers in the first half of the year increased by 15 percent, significantly more than the growth of the Croatian aviation market, but operating costs increased by 22 percent. The result was affected by fleet renewal, higher fuel prices, aircraft maintenance, the strengthening dollar and weaker demand in June.
Croatia Airlines carried 981.482 passengers in the first six months of 2026, the highest number of passengers in the first half of the year in the company's history. Compared to the same period last year, the national airline carried almost 130 more passengers, or a growth of 15 percent.
The number of passengers in domestic scheduled traffic increased by six percent, while international scheduled traffic recorded an 18 percent increase.
Croatia Airlines' traffic growth was significantly higher than the growth of the entire Croatian aviation market. According to data from Croatian airports, a total of 5,5 million passengers were served from January to June 2026, three percent more than in the same period last year. Since Croatia Airlines increased the number of passengers carried by 15 percent, the company also increased its share of the domestic aviation market in the observed period.
The realized passenger kilometers increased by 16 percent, while the passenger occupancy factor was 66,2 percent. This is an increase of 2,7 percentage points compared to the first half of 2025.
During the first six months, Croatia Airlines achieved 17.648 block hours and performed 12.631 flights. The number of block hours increased by five percent, while the number of flights was two percent higher than in the same period last year.
Revenues grew 12 percent, expenses 22 percent
Despite record passenger numbers and revenue growth, Croatia Airlines ended the first half of the year with an operating loss of EUR 36,8 million. The total loss, including net financing result, amounted to EUR 49,7 million.
Total operating revenues increased by 12 percent compared to the first half of 2025. Passenger transportation revenues, which account for 84 percent of the company's total operating revenues, increased by 11 percent, with a 15 percent increase in the number of passengers.
At the same time, operating costs increased by 22 percent. In absolute terms, they were EUR 29,4 million higher than the year before, with the largest part of the increase related to fuel, maintenance, air traffic services, depreciation and fleet transition.
Fuel costs increased by 11,9 million euros, aircraft maintenance costs by 4,9 million euros, and air traffic services costs, which include airport handling and flight control, by 3,4 million euros. Depreciation costs were higher by an additional 3,1 million euros.
The total increase in these four categories amounted to 23,3 million euros, or approximately 79 percent of the total increase in operating costs.
The strengthening dollar increased the loss by 13,6 million euros
The business result was also strongly affected by financial costs related to the growth of the US dollar exchange rate.
Net financing costs were EUR 16,1 million higher than in the same period in 2025, while negative exchange rate differences increased the company's total loss by approximately EUR 13,6 million.
When the negative impact of exchange rate differences is added to the increase in fuel, maintenance, air services and depreciation costs, the total negative impact of these factors amounted to EUR 36,9 million. According to the company's calculations, this amount corresponds to approximately 74 percent of the total loss in the first half of the year.
Croatia Airlines states that these are factors that the company could not directly influence. However, part of the cost increase is directly related to the largest investment cycle in the company's history, namely the simultaneous introduction of new aircraft and the retirement of old ones.
Nine Airbus A220s in the fleet
Croatia Airlines is in the midst of a fleet renewal process, which will run from 2024 to 2027. The project involves the introduction of Airbus A220 aircraft, the adaptation of business and operational processes, employee training, and the temporary management of various aircraft types.
During the first half of 2026, two new Airbus A220 aircraft were introduced to the fleet, bringing their total number to nine at the end of June.
A total of seven new aircraft of this type are planned to be delivered throughout 2026. According to the company's plan, by the end of the year, the fleet should include 14 of the total 15 contracted Airbus A220 aircraft.
In parallel with the introduction of new aircraft, the existing fleet is being phased out and aircraft returned to their owners. This transition period increases operational complexity as the company simultaneously manages different aircraft types, crews, maintenance and related technical processes.
Additional problems are disruptions in supply chains, limited availability of spare parts, lack of workshop capacity for aircraft and engine maintenance, and delays in the delivery of new aircraft. All this complicates the planning of operations and increases the costs of the transition.
In the long term, the transition to a single new generation fleet should simplify operational processes, reduce maintenance costs and fuel consumption, and reduce carbon dioxide emissions. However, the expected benefits of full fleet standardization will only be more clearly assessed after the transition period is over.
Rising fuel prices put additional strain on business
The company's operations in the first half of the year also took place in conditions of rising jet fuel prices. According to Croatia Airlines, the escalation of the conflict in the Middle East at the end of February 2026 led to a sharp increase in fuel prices and an increase in the operating costs of airlines.
The company cites projections from the International Air Transport Association, which predicts that the average price of jet fuel in 2026 should reach 152 US dollars per barrel. This would be almost 70 percent higher than the average price in 2025.
According to the same projections, the global aviation industry's total fuel costs could increase by almost 40 percent by 2026.
In addition to rising prices, risks for the aviation industry include a possible fuel shortage at some European airports due to geopolitical tensions and conflicts in the Middle East.
An additional problem for airlines is that increased costs cannot always be passed on immediately to airline ticket prices. Intense competition, existing bookings and the sensitivity of demand limit the ability to quickly increase average fares.
After strong growth until May, passenger numbers drop in June
Demand trends during the first half of the year were uneven. In the period from January to May 2026, Croatia Airlines increased the number of passengers by 21 percent, but in June there was a two percent decrease compared to the same month the previous year.
In the same month, the number of tourist arrivals in Croatia was seven percent lower than in June 2025.
Weakening demand led to more pronounced pricing activity among airlines. Increased competitive pressure affected average fares and thus Croatia Airlines' revenues, despite the overall growth in the number of passengers carried in the first six months.
This relationship between volume growth and slower passenger revenue growth shows that a higher number of passengers in itself does not necessarily lead to a proportional improvement in financial performance, especially when costs are rising and average ticket prices are falling at the same time.
The second half of the year will be marked by the continuation of the transition
Croatia Airlines identifies the main risks for the continuation of the business year as the operational and financial consequences of the fleet transition, difficulties with the supply of spare parts and aircraft maintenance, the growth and volatility of jet fuel prices, changes in the US dollar exchange rate, and geopolitical risks.
In the second part of the year, the company will continue to adjust its capacity and flight schedule to the demand and booking trends, while implementing rationalization and cost control measures.
The results of the first half of the year thus show two parallel pictures of the national airline's business. On the one hand, Croatia Airlines is recording a record number of passengers, increasing aircraft occupancy and growing significantly faster than the domestic market. On the other hand, fleet renewal, rising operating costs, more expensive fuel, maintenance and unfavorable exchange rate differences resulted in a total loss of almost 50 million euros.
The key question for the rest of the year will be whether passenger traffic growth and the gradual introduction of a single fleet can begin to have a stronger impact on revenues and efficiency, or to what extent external cost pressures will continue to offset the benefits of increased traffic.
