The national carrier carried 981,482 passengers in the first half of the year, but fleet renewal and rising costs resulted in a loss. Meanwhile, Valamar increased revenues to €158 million.
Croatia Airlines carried a record 981,482 passengers in the first six months of 2026, a 15 percent increase compared to the same period last year, as reported by HRTurizam. Despite this historic result and revenue growth, the company recorded an operating loss of €36.8 million, while the total loss, including net financing results, amounted to €49.7 million. The reasons are a sharp rise in operating costs and negative exchange rate differences.
For comparison, the Croatian aviation market grew at a significantly slower pace during the same period, recording a 3 percent increase in passenger numbers, totaling 5.5 million. This means the national carrier increased its market share. Passenger numbers in domestic scheduled traffic rose by 6 percent, while international traffic saw an 18 percent increase. Revenue passenger kilometers grew by 16 percent, and the aircraft load factor reached 66.2 percent, an increase of 2.7 percentage points. In the first six months, Croatia Airlines logged 17,648 block hours and operated 12,631 flights, with block hours up 5 percent and the number of flights up 2 percent.
Although total operating revenues increased by 12 percent, operating costs jumped by 22 percent, or €29.4 million. The biggest hit came from rising fuel prices, with costs increasing by €11.9 million. Aircraft maintenance costs (€4.9 million), air traffic services (€3.4 million), and depreciation (€3.1 million) also rose significantly. The combined increase in these four categories amounted to €23.3 million, accounting for 79 percent of the total increase in operating costs.
Additional pressure on the financial result came from negative exchange rate differences due to the strengthening of the US dollar, which increased the loss by approximately €13.6 million. Net financing costs were €16.1 million higher than in the same period in 2025. According to the company's calculations, the combined negative effect of cost increases and exchange rate differences amounts to €36.9 million, corresponding to a 74 percent share of the total loss incurred.
Croatia Airlines is in the midst of the largest investment cycle in its history, the renewal of its entire fleet with Airbus A220 aircraft. During the first half of the year, two new aircraft were introduced, bringing the total to nine by the end of June. The plan is to have 14 of the 15 contracted Airbus A220s by the end of the year. The renewal process, spanning from 2024 to 2027, also brings significant transition costs due to managing both the old and new fleets simultaneously.
According to HRTurizam, the escalation of the conflict in the Middle East at the end of February 2026 led to a sharp rise in jet fuel prices. Projections from the International Air Transport Association, cited by Croatia Airlines, indicate an average price of $152 per barrel in 2026, nearly 70 percent higher than in 2025.
Meanwhile, tourism company Valamar generated operating revenues of €158 million in the first half of the year, a 10 percent increase year-on-year, with two million overnight stays. Accommodation revenues reached €125 million, also up 10 percent. The key growth driver was the opening of Pical Resort 5* in Poreč, an investment worth over €200 million, which began operations in mid-March.
Due to this investment, the destination of Poreč recorded a 21 percent increase in accommodation revenues. However, the costs of preparing and opening new properties, including the Sunny Poreč by Valamar and Aquamar Brulo hotels, which started operations in early July, led to Valamar's adjusted EBITDA being negative in the first half of the year, at -€2.2 million, compared to a positive €4.3 million in the same period last year.
Valamar emphasizes that the majority of annual revenues and profits are traditionally generated in the third quarter, during the peak tourist season.
