airBaltic to cut fleet to 36 aircraft in new stability-focused plan

airBaltic has approved a new business plan that shifts its strategic priority toward financial stability rather than expansion, according to the airline. The plan was endorsed by a Supervisory Working Group formed by Latvia's Ministry of Finance after review of the carrier's financial results.

Under the plan, airBaltic intends to reduce its all-Airbus A220-300 fleet from 54 aircraft to 36 by the end of 2026, with a gradual increase to around 40 aircraft by 2031. The airline said it will seek roughly $259 million (€225 million) in interim financing to support the transition.

Despite the smaller fleet, airBaltic said scheduled capacity is expected to stay broadly stable through better aircraft utilization and expanded ACMI partnerships that would allow more efficient year-round deployment and reduce seasonal fluctuations. The airline plans to concentrate its network around its Riga base, focusing on increasing frequency and depth in markets where demand and profitability are already strong, rather than pursuing broader route expansion.

The new approach marks a departure from a previous strategy built around an anticipated initial public offering, which had envisioned growing the fleet to about 100 aircraft. According to the airline, the revised plan reflects a response to a challenging operating environment and is intended to secure its long-term viability without continued reliance on regular state financial support.

The Supervisory Working Group overseeing the process was established in December by Latvia's Ministry of Finance following the airline's November financial results, which prompted the requirement for a new sustainability-focused strategy.