The government continues to financially support the national airline during its fleet renewal. The new recapitalisation comes at a time when Croatia Airlines is seeing a rise in passenger numbers but also significantly larger operating losses.<\/p>\n\n\n\n
The Croatian state continues to invest in Croatia Airlines. At the General Assembly held on 29 October 2026, a decision was made to increase the share capital by a further 35 million euros. This will raise the national carrier's share capital from approximately 213.3 million to 248.3 million euros.<\/p>\n\n\n\n
The capital increase will be carried out by issuing 35 million new ordinary shares with a nominal value of one euro each. All the new shares will be subscribed for and paid up by the Republic of Croatia, while the other shareholders have been excluded from the right of first refusal.<\/p>\n\n\n\n
This is a continuation of the government's financial strengthening programme for Croatia Airlines, which the Government adopted in December 2025, primarily to enable the implementation of a demanding fleet renewal programme.<\/p>\n\n\n\n
The new recapitalisation follows an increase in the share capital of almost \u20ac77.9 million in January this year. At that time, part of the state's receivables was converted into equity, while \u20ac35 million was provided by a cash payment.<\/p>\n\n\n\n
The total increase in capital through these two decisions amounts to approximately \u20ac112.9 million, but it is important to distinguish between direct cash payments and the conversion of existing liabilities into equity.<\/p>\n\n\n\n
The financial results show why additional government support is important for the company's operations.<\/p>\n\n\n\n
According to the report for the first nine months of 2026, Croatia Airlines recorded a net loss of \u20ac64.7 million, compared with a loss of \u20ac20.9 million in the same period last year.<\/p>\n\n\n\n
At the same time, 1.66 million passengers were carried, seven per cent more than the previous year. However, the increase in traffic was not enough to offset the rise in operating costs.<\/p>\n\n\n\n
Total revenues reached \u20ac227.9 million, while expenses amounted to \u20ac292.6 million. Costs for fuel, aircraft maintenance and financing new aircraft rose in particular. Negative exchange rate differences also contributed to the increased loss.<\/p>\n\n\n\n
One of Croatia Airlines' biggest challenges at present is the transition to its new Airbus A220 fleet, through which the company is gradually replacing its older Airbus A319 and A320 aircraft and its Dash 8-Q400 turboprop aircraft.<\/p>\n\n\n\n
The renovation programme began in 2024, and its completion is planned for 2027.<\/p>\n\n\n\n
The new fleet should, in the long term, enable more efficient operations and lower fuel consumption per seat. However, the transition period requires additional investment in crew training, maintenance and the adaptation of operational processes.<\/p>\n\n\n\n
According to the company's financial report, at the end of September the operating fleet comprised 11 Airbus A220 aircraft, alongside four Airbus A319s and two Dash 8-Q400 aircraft.<\/p>\n\n\n\n
At the same time, Croatia Airlines operates in a highly competitive market. Particular pressure comes from low-cost carriers, including Ryanair, which has been expanding its presence in Zagreb in recent years.<\/p>\n\n\n\n
For the Croatian Government, Croatia Airlines plays a strategic role in maintaining Croatia's air connectivity, particularly during the winter months and on routes that are important for domestic traffic, tourism and business travel.<\/p>\n\n\n\n
However, an increase in equity capital alone does not mean that profitability issues have been resolved.<\/p>\n\n\n\n
In the coming period, the company will have to demonstrate whether fleet modernisation can lead to more efficient use of capacity, higher revenues and reduced operating costs.<\/p>\n\n\n\n
In particular, the development of the route network, aircraft load factors and the ability to compete with carriers operating with a different cost structure will be important.<\/p>\n\n\n\n
State financial support for Croatia Airlines provides additional room to continue operating and complete its fleet renewal. However, the results for the first nine months of 2026 show that significantly more than a simple capital increase will be required for long-term financial stability.<\/p>\n\n\n\n