AirBaltic will shrink its all-Airbus A220-300 fleet this year as economic pressures continue to squeeze the European air travel industry.
The Latvian flag carrier said Tuesday that it is adopting a new business plan as demand levels off and costs continue to rise. As part of that plan, the airline will reduce its A220 fleet from 54 aircraft to 36 by the end of this year.
Over the long term, airBaltic expects to rebuild to 40 A220s by 2031.
The airline previously planned to grow its fleet to around 100 aircraft but said Tuesday that its “operating environment has changed materially.” It cited moderating revenue growth, uncertainty and high costs stemming from conflicts in Ukraine and the Middle East, and constraints on Pratt & Whitney engine deliveries.
In addition to right-sizing its fleet, airBaltic said it will deepen its presence in existing markets, increase profitability, and secure €225 million of interim financing. Riga will remain its primary hub, airline officials said.
“Every successful airline must continuously adapt to a changing market,” airBaltic President and CEO Erno Hildén said in a news release. “Thus, this business plan is about making disciplined choices that strengthen airBaltic’s long-term competitiveness while preserving what matters most – reliable connectivity and operations, together with financial sustainability.”
