Croatia Airlines eyes return to former markets

Croatia Airlines plans to expand its destination network this year with the carrier eyeing the introduction of up to eight new routes, some of which will include points it formerly served from its main hub in Zagreb. The carrier recently applied for slots with Portuguese authorities for the introduction of flights to Lisbon, which it last served from the Croatian capital in October 2019. It is yet to be granted its desired arrival and departure times. The majority of the new routes are planned from Zagreb, however, network expansion has been tied to the delivery of new Airbus A220 aircraft. The airline currently has two in its fleet, with a third expected in March. At the same time, the airline will begin retiring some aircraft in its existing fleet.

Croatia Airlines’ CEO, Jasmin Bajić, noted that supply chain issues and aircraft delivery delays continue to have an impact on the carrier. “There is no doubt that the delivery of new aircraft and parts is a concern. Requests for many parts used to be resolved in 24 hours but now it takes two to three days. And that represents a large cost. Fleet availability significantly affected our costs in 2024, and we were forced into short-term leases as we had to keep up our schedules, maintain our slots, and ensure a good customer service. It was a difficult situation”. He added, “We provide some third-party maintenance activities too and these were also affected by the shortages in the spares market. These issues have cost us an extra ten million euros in the first nine months of 2024. When you consider that our annual revenue will be in the range of 260 million euros, you can see the extent of the problem. Let’s see what happens with the delivery of our new aircraft”.

Croatia Airlines has so far made minor changes to its network for the coming summer season. Its seasonal routes from Zagreb to Berlin and Stockholm will resume earlier than usual, from the very start of the summer season, on March 30 and March 31, respectively. Last year, operations commenced in May. However, overall, from July onwards, the airline still has fewer flights scheduled in its network than in 2024, which is expected to change in the coming weeks. The carrier is also yet to schedule flights on its seasonal service between Zagreb and Tirana, as well as Split and Skopje. “By the end of 2027, we hope to have fifteen new A220s which will replace our entire existing fleet. This will not only enable our growth but also make us more competitive and sustainable, which fits our business plans perfectly. We must also respect the fact that Croatia Airlines is integral to our country’s transport and infrastructure. That makes our role in tourism vital. We’re working together with tourism and government authorities to boost visitors to our country year-round”, Mr Bajić noted.