AirBaltic and Lufthansa Group Agree Revised Wet Lease for Airbus A220s

RIGA, Latvia — Latvian flag carrier airBaltic announced on Monday that it has reached a new, multi-season wet lease agreement with the Lufthansa Group to operate Airbus A220-300 aircraft across the German group's European route network. Under the terms of the updated commercial arrangement, airBaltic will provide aircraft, crew, maintenance, and insurance (ACMI) for up to six A220-300s during peak summer seasons and up to four aircraft during the winter schedule.

The revised commitment represents a substantial downscaling of the extensive operational integration previously planned between the two European airline groups. Under an earlier multi-year strategic framework, airBaltic had been positioned to supply as many as 21 A220 aircraft during summer schedules and up to five during winter periods through 2028. During the peak summer of 2026, approximately 20 airBaltic jets flew on behalf of Lufthansa Group subsidiaries, including Swiss International Air Lines (SWISS), Brussels Airlines, and Austrian Airlines.

Evolving Fleet Strategy Across Lufthansa Subsidiaries

The reduction in leased capacity reflects changing operational requirements across the Lufthansa Group as several member airlines strengthen their internal narrowbody resources. Group carrier SWISS has already confirmed that it will conclude its use of wet-leased airBaltic aircraft at the end of the 2026/2027 winter season, citing improved domestic fleet availability and the normalization of flight crew staffing levels. Similarly, Brussels Airlines did not renew wet-lease arrangements for the current winter season and has indicated it does not anticipate deploying external A220 capacity in 2027.

At the same time, Lufthansa is gradually introducing its own next-generation regional capacity. Group subsidiary Lufthansa City Airlines took delivery of its first factory-new Airbus A220-300 in November, marking the initial arrival from a direct order of 40 firm aircraft with 20 options. The phased arrival of these in-house airframes reduces the parent group's systemic dependence on external ACMI capacity to maintain scheduled frequencies from key hubs in Frankfurt and Munich.

Critical Financial Pillar for Baltic Restructuring

For airBaltic, preserving an operational relationship with the Lufthansa Group—which holds a ten percent equity stake in the Latvian carrier—remains central to its corporate survival. On September 14, 2026, airBaltic voluntarily filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of New York to restructure accumulated debt, elevated operating costs, and lingering financial pressures linked to engine reliability issues.

Documents filed with the New York court identify Austrian Airlines AG as the Lufthansa Group negotiating partner for the modified agreement. Submission of the finalized wet-lease contract serves as an explicit milestone required for the disbursement of additional tranches under airBaltic's €350 million debtor-in-possession (DIP) credit facility.

Wet leasing represents a vital, high-margin revenue engine for the Riga-based carrier. In recent financial reporting, airBaltic's ACMI revenues doubled to €157 million annually, expanding to account for over 20 percent of the airline's total turnover. In addition to the Lufthansa contract, the airline continues a multi-year ACMI engagement with Air Serbia, operating four A220s in summer and two in winter.

Under a revised business plan formally adopted in August, airBaltic is consolidating its core fleet from 54 aircraft down to 36 A220-300s by the end of 2026, maintaining that baseline through 2027 while aiming to exit bankruptcy proceedings by mid-2027.

"The Lufthansa Group's decision to extend our cooperation for the coming seasons reflects the trust we have built together over the past few years," said Mantas Vrubliauskas, airBaltic's Vice President of Network Management. Vrubliauskas emphasized that the A220-300 provides a fuel-efficient, passenger-friendly platform that integrates seamlessly into partner hubs while helping airBaltic balance seasonal capacity swings across its primary Baltic network.