Croatia Airlines plans €500m fleet overhaul amid losses
For some airlines, the bottom line isn’t king. Croatia’s state operator is first and foremost a symbol of its international presence.
Croatia Airlines is a flag carrier in the traditional sense. It is as much an exercise in national pride as a government-owned transport service. Its livery incorporates the same red-and-white draughtboard pattern as the jerseys of the country’s soccer team, a motif drawn from the flag that the nation adopted when it secured independence from Yugoslavia in 1991. If only Croatia’s airline could boast the same record of success as its football players.
Today the colour red also features prominently in the airline’s accounts. The carrier accrued losses of almost €21m in the first three quarters of 2025, more than double the figure for the same period in 2024, despite receiving government handouts of about €10m per year for operating so-called “public-service” flights domestically. Meanwhile, regional rival Air Serbia has continued to grow in strength since its launch in 2013.
But for the nation’s prime minister, Andrej Plenkovic, the outlay has been worth it. Last year he described the carrier as “a symbol of Croatia”; he also outlined a plan to spend about €500m to renew its fleet and become an all-A220 operator. This raised eyebrows. “Many are baffled,” says Luka Popovic, the founder of Ex-Yu Aviation News, a website covering the region’s aviation news. “With short flights and a low load factor, they could have 150-seat planes with just 15 passengers,” he says. But Croatia Airlines is determined.
The company, however, has acknowledged that it will still need smaller planes on some of its routes to guarantee year-round services. One solution is “wet leasing”: an agreement that involves renting out both aircraft and crew from other airlines. While this would put further strain on the airline’s already stretched finances, it will offer crucial services to those travelling in a country whose expansive coastline makes for long drives. Whether this move will be enough to ensure that the air carrier’s service is as distinctive as its livery remains to be seen – but for Croatia, the value of its flag carrier isn’t measured by its balance sheet alone.
Comment
An airline’s livery is guaranteed to be well travelled – so don’t overlook its marketing potential. Done well, it can carry your country’s brand across the globe.
