Console (Virtual Terminals)
The default font used in the console and in virtual terminals uses the ASCII character set. To use other fonts change the Template:Codeline and Template:Codeline settings in Template:Filename. Different fonts can be found in Template:Filename directory and key maps can be found in the subdirectories of Template:Filename.
For displaying characters such as č, ć, ž, đ, or š use the font Template:Filename:
And set the proper key map, in this case:
HOOKS="base udev autodetect pata scsi sata filesystems keymap"
Then rebuild the image:
# mkinitcpio -p kernel26