Croatian Airlines expects that the airline will continue to cause losses in the short term due to the transition to last year’s A220 A220 fleet. However, in the long run, operators are confident that the shift will generate overall savings. It released a Net loss of nearly 20 million euros last year. The airline details its arrival in 2024 in the first two 220s and how delays in delivery have had an impact on the company’s finances. “The investment cycle of the replacement fleet is marked by transitional operational and financial challenges. Therefore, the company predicts negative financial results for this period.”
Croatian Airlines noted that outlined the challenges faced by the company, “the arrival dates of two new A220 aircraft could have been delivered before the start of the summer of 2024, and these aircraft were repeatedly delayed. This required adjustments to activities related to their handover. The first A220 aircraft began commercial flights on August 6, 2024, while the second began on December 27, 2024. These delays required engagement with additional and more expensive aircraft on a short-term wet lease to maintain planned flights. Timetable, keeping airport slots and maintaining passenger trusts. “It added: “Pilot training for new aircraft must not be on duty for two months. The top twenty pilots, including five coaches, face longer downtime due to repeated delays. Training depends on pre-arranged simulator slots and Airbus availability. Pilots have to repeat their simulator training because delays in aircraft delivery prevent them from starting flight within 21 days of completing the initial training as required by regulations.”
Croatia Airlines further added: “In 2024, there was a significant increase in hotel accommodation and daily allowances due to intense training. In 2024, more pilots were required to hire than pilots who ensure more aircraft arrived in 2025. Due to coaching training, the new aircraft could not operate in full due to no available crew. In addition, there are also related costs involved in the aircraft acquisition team and the registration of the two aircraft.” Croatia Airlines also conducted the fees for training two groups of mechanics for the new aircraft type, for the various operating IT systems of the A220 and the cost of obtaining spare parts and the first backup engine of the new jet.
Last year, the airline spent €10.9 million on short-term wet rentals of two Airbus A320 home aircraft and €28.9 million on spare A220 engines and parts. “In September and October 2023, the company received funds from the sale of its own Airbus aircraft, which are about to end their life cycle. These funds are dedicated to funding the acquisition of spare engines and spare parts for the new A220 aircraft in 2024. In 2024, the company paid an advance payment for the A220 fleet to purchase a second spare engine totaling €961.000, with a safety deposit of €559.000 before the arrival of two new aircraft in the fleet and provided a deposit for access to the parts pool of the new A220, totaling €185.000, totaling €185.000.
