Air Baltic had an average of eight Airbus A220 aircraft simultaneously grounded over spare engine shortages last year, and expects the situation to continue in 2025.
The figure is lower than the nine it recorded the previous year, and the carrier states that the overall performance of the Pratt & Whitney PW1500G powerplant is “slightly improving”, as indicated by reduced removal rate and fewer problems such as bearing oil leakage.
Air Baltic recorded a 12% hike in revenues to €747.5 million last year. This included €146 million generated by its wet-lease business, up by 46%, with 17 aircraft flying for other European carriers over the summer.
But being unable to operate at full capacity, and having to wet-lease older, less fuel-efficient aircraft from other operators during summer, contributed to a full-year net loss of €118 million ($129 million).
Some of these aircraft had 30-40 more seats than the A220, pushing down load factor and driving up airport charges.
“There were cases when sourcing of [wet-leased] capacity was impossible due to no suitable aircraft being available in the market on short notice,” it adds.
Up to nine aircraft were wet-leased at one time last year, although this was down on the 13 in 2023.
The carrier recognised €40 million of an estimated €80 million impact from accelerated depreciation of engine parts.
“Demand reached new heights, setting fresh benchmarks in our history,” says chief executive Martin Gauss.
“However, industry-wide engine maintenance issues and currency fluctuations impacted the financial performance. Nonetheless, these are temporary setbacks that do not change our long-term trajectory.”
In September the airline signed a fleet-management programme pact, which includes a commercial support agreement, aimed at mitigating the engine issues.
Air Baltic’s full-year loss was also partly driven by a €32 million impact from foreign exchange and liability revaluation.
“We remain committed to sustainable growth, optimising our fleet, and enhancing the network to strengthen Air Baltic’s position for the future, including potential initial public offering,” adds Gauss.
