Latvian carrier, airBaltic has confirmed that it will reduce its all-Airbus A220-300 fleet by a third as part of a major restructuring programme, designed to strengthen its finances.
The airline said that its current fleet of 54 A220s will be reduced to approximately 36 by the end of this year. It will gradually rebuild this number to around 40 jets by 2031. The airline said its operating environment has “changed materially”, citing moderating passenger demand and revenue growth, higher costs and uncertainty caused by geopolitical developments in Ukraine and the Middle East. Additionally, prolonged availability problems affecting the Pratt & Whitney engines powering its A220s have prevented airBaltic from deploying its entire fleet consistently.
Under the revised strategy, Riga will be strengthened as airBaltic’s principal hub. The airline said it will place greater emphasis on frequency and profitability in established markets rather than wider network expansion. It will also develop longer-term ACMI operations. This, it said will help improve aircraft utilisation during quieter winter periods and reducing seasonal volatility.
The restructuring is expected to generate around €45m in recurring annual benefits. At the same time, airBaltic is seeking €225m in interim financing as a bridge towards a wider recapitalisation involving new debt and equity.
Chief executive Erno Hildén said: “Every successful airline must continuously adapt to a changing market”. He went on to describe the revised approach as making “disciplined choices that strengthen airBaltic’s long-term competitiveness while preserving what matters most – reliable connectivity and operations, together with financial sustainability”. The airline stressed that its current published schedule and passenger bookings remain unaffected by the restructuring.
