Croatia Airlines has appointed AVIAREPS as its Cargo General Sales Agent (GSA) in the United Kingdom, covering sales, reservations, administration, account management and market development; this is a commercial representation agreement, not a transaction, and no deal consideration arises.

Croatia Airlines is the national carrier of Croatia, headquartered in Zagreb and 97.66% state-owned. For FY2025, Croatia Airlines carried 2,042,993 passengers, up 11%, and reported total revenues up 6%, with positive EBITDA of €9 million (up 23%) but an operating loss of €36.3 million as fleet transition costs of €21.2 million weighed on results. The airline is mid-way through a full fleet replacement with Airbus A220 aircraft, operating seven A220s, five A320-family aircraft and four De Havilland Dash 8-400s at end-2025.

AVIAREPS is a Munich-headquartered global travel industry representation company, acting as GSA for airlines, tourism boards and hospitality brands across more than 70 countries, with its UK cargo team representing Croatia Airlines to freight forwarders, cargo agents and shippers.

The structural driver is Croatia Airlines' need to access UK cargo revenue without maintaining a direct commercial presence in a market that does not justify a dedicated cargo sales team's fixed cost. GSA representation converts that fixed cost into a variable one, paid on a commission or fee basis against booked volumes.

The UK-Balkan trade lane, particularly for high-value time-sensitive cargo such as aerospace parts and pharmaceuticals transiting through Zagreb, represents a commercially viable opportunity that a specialist GSA with established forwarder relationships is better placed to develop than an airline cargo department operating at arm's length from the market.

The timing is significant. Croatia Airlines is absorbing €86 million in state recapitalisation, €43 million in 2025 and €43 million in January 2026, plus two €35 million cash contributions in 2026 and 2027. The GSA model preserves UK cargo market presence at minimal incremental cost during a period when capital is being rationed toward fleet investment.

For the sector, Croatia Airlines' GSA appointment reflects the broader pattern of European regional carriers outsourcing cargo sales in secondary markets during periods of fleet transition, a model that specialist GSA networks like AVIAREPS have been positioned to capture.

Source: aviareps.com / aircargoweek.com / croatiaweek.com / flightglobal.com