airBaltic Slashes Its A220 Fleet by a Third in a New Rescue Plan

On August 11, 2026, airBaltic’s Supervisory Working Group approved a new business plan that shrinks the Latvian carrier’s Airbus A220 fleet by roughly a third, from 54 aircraft to about 36 by the end of the year, while the airline seeks 225 million euros ($259 million) in emergency financing to stay solvent.

The plan is a sharp reversal from airBaltic’s prior strategy, which was built around a planned initial public offering and envisioned growing the airline’s all-A220-300 fleet to 100 jets.

Why the Fleet Is Shrinking

airBaltic cited weaker demand and revenue growth than it had planned for, along with rising costs and route disruption tied to Russia’s war in Ukraine and the conflict in the Middle East.

The airline also pointed to ongoing availability problems with its Pratt & Whitney GTF engines, the same geared-turbofan family whose durability issues have grounded aircraft at carriers worldwide, including prompting British Airways to switch engine suppliers on its own A320neo order.

Under the new plan, the fleet grows back slowly to about 40 aircraft by 2031, still well short of the original 100-jet target. CEO Erno Hildén said the 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.”

A State Airline’s Money Problem

airBaltic is Latvia’s flag carrier and the dominant airline at its Riga hub, so a financing crunch at the airline is also a concern for the Latvian government, which owns the bulk of the company.

Latvian officials have described the airline’s financial position as serious, and the government’s continued backing is central to whether the rescue plan succeeds, since the state would need to help fund the new equity airBaltic is seeking.

The Financing Fight

airBaltic is asking bondholders to approve 225 million euros of interim financing to bridge it to a permanent package: up to 225 million euros in new debt plus 100 million euros in new equity. Part of the airline’s existing 2029 senior secured notes would convert into shares.

A first bondholder meeting on August 3 was postponed for lack of attendance. A reconvened vote is now set for August 17, with further rounds expected if that one also falls short.

What “Financial Stability First” Looks Like

Instead of expanding into new markets, airBaltic says it will concentrate its schedule around Riga and lean more heavily on ACMI, or wet-lease, contracts, where airBaltic supplies aircraft, crew, maintenance and insurance to other carriers under short-term deals.

That work fills flying hours on aircraft that would otherwise sit idle between seasonal peaks, without airBaltic taking on a route’s commercial risk itself.

The airline is targeting about 45 million euros a year in recurring savings and new revenue from the changes. It projects revenue climbing from roughly 0.8 billion euros in 2027 to 1.0 billion euros by 2031, with its debt load falling relative to earnings over the same period.