airBaltic will revise its business plan and reduce the size of its fleet.
After standardizing its fleet on the Airbus A220-300, the airline will reduce the number of aircraft. The fleet will be reduced from the current 54 aircraft to around 36 by the end of the year, before being gradually expanded to 40 aircraft by 2031. By consolidating its network around Riga, Latvia, and improving aircraft utilization, the airline will generally maintain its scheduled flight capacity. It will also strengthen year-round leasing operations.
The previous business plan was formulated in preparation for an initial public offering and envisioned expanding to a fleet of 100 aircraft. Growth in demand and revenue had slowed, while uncertainty and increased costs stemming from the situations in Ukraine and the Middle East, as well as ongoing operational restrictions caused by engine supply issues, continued.
The new business plan is expected to generate recurring annual benefits of approximately EUR 45 million. The airline aims to strengthen its long-term competitiveness and establish a sustainable capital structure. To restructure its capital structure, it expects to secure EUR 225 million in bridge financing, an equivalent amount in new borrowings, and EUR 100 million through the issuance of new shares.
airBaltic was established in 1995. The Latvian government holds 88.37% of voting rights, the Lufthansa Group holds 10%, and private companies hold the remainder. The airline serves more than 80 cities, mainly in Europe, and has more than 3,000 employees.
