Croatian Airlines is attributing its one-year loss-added performance to the cost of moving its new Airbus A220 fleet and to the outside pressure that is largely uncontrolled.
The first two A220s point to “repeated push back” while being scheduled for delivery by the summer 2024 season.
The first aircraft only began commercial flights in early August, but the second was not introduced until December.
The first 20 pilots, including five instructors, had to spend longer than planned simulator training, even repeating sessions due to the new aircraft type, due to delays in delivery.
The carrier adds that training requests allowed them to reduce crew availability and thus could not fly the aircraft at full capacity.
Alongside the A220, there are six Airbus A320 Family Jets and six DeHavilland Dash 8 Turboprops.
Croatian Airlines generated a full year operating loss of nearly 16 million euros ($16.6 million) and a net loss of 19.6 million euros, in contrast to profits recorded in 2023.
The fleet replacement cycle has been described as being “characterized” by “operational and financial challenges,” and airlines expect negative financial results.
However, it adds that other areas also face “significant cost exposures.”
These include long-term maintenance of the Airbus and the Dash 8 Fleet, which runs until July 2024, resulting from difficulties in the spare parts supply chain.
He adds that the aircraft's grounding, which normally took 24 hours, took two or three days to resolve.
Croatian Airlines says capabilities issues forced them to wet lease “a massively expensive” aircraft to meet flight schedules.
The carrier also hired excessive pilots last year to secure the largest possible crew for the fleet expansion in 2025.
It trained 11 crew members for the Dash 8, with an additional 11 being hired as the first officers of the Airbus A319 and A320.
The fleet transition has resulted in spending on maintenance training, IT systems adaptation, and procurement of spare engines and parts for the A220.
Croatian Airlines, like other operators, is affected by the Middle East geopolitical situation, adding that it has lost 1.5 million euros in revenue.
