airBaltic to reduce fleet and restructure operations

Latvian national carrier airBaltic has announced a major strategic restructuring to prioritize financial stability over rapid expansion. The airline plans to significantly reduce its fleet of Airbus A220-300 aircraft, aiming to downsize from 54 planes to approximately 36 by the end of 2026. This marks a sharp departure from previous goals of operating up to 100 aircraft by 2030, with a new long-term target of roughly 40 aircraft by 2031.

The airline cited several factors for the shift, including geopolitical instability in Ukraine and the Middle East, rising operational costs, and supply chain delays regarding Pratt & Whitney engines. To support this transition, airBaltic is seeking approximately €225 million in interim financing and intends to refocus its operations around its primary hub in Riga, Latvia, while increasing reliance on ACMI (aircraft, crew, maintenance, and insurance) leasing partnerships.

The Latvian Aviation Trade Union has expressed serious concern regarding the plan, warning that the fleet and network restructuring will likely lead to a 20% to 30% reduction in staff. The union criticized management for failing to conduct timely consultations with employee representatives regarding the potential impact on hundreds of jobs.