Government-Backed Croatia Airlines Recapitalisation Strengthens Fleet, Ensures Reliable Flights, and Elevates Croatia’s Tourism Connectivity

Published on November 25, 2025

Croatia has decided to increase the capital of Croatia Airlines by converting around €43 million of debt into equity. This recapitalisation is more than an internal financial adjustment. It is also a strategic decision intended to secure stronger and more reliable air connectivity for millions of travelers heading to Croatia each year. This move reflects the airline’s critical role in connecting international tourists to Croatia’s popular cities and coastal destinations.

How the Recapitalisation Works

The government plans to take over newly issued shares equal to the value of the debt being converted. This will raise Croatia Airlines’ total share capital to more than €135 million. The decision now awaits shareholder approval, expected at the upcoming meeting scheduled at the end of December. Once approved, the move will further solidify state control over the national carrier and give the airline a stronger financial base.

For travelers, this means the airline can continue to operate with improved stability. A well-capitalised airline can invest in modern aircraft, maintain flight schedules more effectively, and offer dependable service across the year.

Why Travelers Should Care

Croatia Airlines acts as a lifeline for transport across the country. The nation’s geography — with its island clusters, long Adriatic coastline, and historic inland cities — makes air travel essential for quick and comfortable movement. The airline connects major hubs like Zagreb, Split, and Dubrovnik with regional European capitals.

A more stable Croatia Airlines helps ensure that tourists can rely on consistent flights, particularly during peak summer months when demand surges, as well as during quieter seasons when schedules often shrink. Year-round access is especially important for travelers who enjoy exploring Croatia outside the summer rush, when the country’s natural beauty and UNESCO sites remain just as attractive.

Airline Losses Prompt Government Action

During the first nine months of 2025, Croatia Airlines reported a net loss exceeding €20 million. This represented a significant increase over the previous year. The higher loss was largely tied to its major fleet renewal program. The airline is in the process of retiring older aircraft and replacing them with more efficient Airbus A220 jets.

This upgrade aims to offer travelers quieter cabins, lower fuel emissions, and more comfortable seating. However, manufacturing delays and workforce shortages in the aviation sector have caused aircraft deliveries to be pushed back, increasing operational costs and affecting short-term financial results.

The recapitalisation is therefore seen as a measure to protect ongoing investments and ensure that fleet improvements — which directly benefit passengers — can continue.

Government Sees Tourism as the Key Driver

Tourism remains one of Croatia’s strongest economic pillars. Government agencies frequently emphasise that air travel plays a decisive role in supporting tourism flows. The latest development signals the state’s intention to safeguard reliable air access in order to sustain the industry.

Officials have expressed that the health of Croatia Airlines is tied to the country’s tourism strategy. Ensuring the airline remains stable will help keep Croatia connected to key international markets and support long-term tourism planning. As the nation aims to encourage year-round tourism, the availability of flights throughout all seasons becomes increasingly important.

Better Travel Prospects for the Future

Once the recapitalisation takes effect, travelers may notice several long-term benefits:

1. Improved Route Stability

A stronger financial base allows the airline to maintain regular services even outside the summer season. This benefits travelers seeking autumn cultural trips, spring island escapes, or winter city holidays.

2. Modernised Aircraft and Better Comfort

The introduction of the Airbus A220 fleet will make flights more modern and environmentally efficient. Travelers can expect quieter aircraft, improved fuel efficiency, and more comfortable cabins.

3. Stronger Regional Links

As the airline stabilises, it may increase frequencies on popular tourist routes and strengthen connections between coastal and inland cities.

4. Reliable Year-Round Tourism Access

The recapitalisation supports Croatia’s vision of expanding tourism beyond the warm months. Reliable flights encourage winter festivals, cultural events, and business travel.

A Boost for Global Tourists

For visitors from around the world, the government’s decision is a reassurance that travel to Croatia will continue to improve. Whether planning a scenic trip to Dalmatian islands, heading to Dubrovnik’s medieval old town, or exploring Zagreb’s café culture, tourists will benefit from the strengthened network Croatia Airlines aims to maintain.

The recapitalisation marks an important chapter for the airline and sends a clear message: Croatia intends to keep its skies open, its tourism vibrant, and its national carrier ready to welcome global travelers throughout the year.