Latvian carrier AirBaltic continues to grapple with the impact of Pratt & Whitney geared turbofan engine inspections and overhauls after it swung from an annual profit to a loss in 2024.
From a peak of 13 Airbus A220-300s grounded in the in the first quarter of 2023, airBaltic saw AOGs fall to three aircraft a year later, but then rise again steadily to 13 AOGs by the final quarter of last year.
On average it had eight A220s grounded through 2025, and it expects engine issues to continue this year and next, albeit with “continuous improvements.”
AirBaltic and Pratt signed a flight-hour-based engine maintenance deal last year to give it long-term cost predictability, although it warned that shortages of spare geared turbofan (GTF) engines would persist.
The airline blamed the AOGs, increased competition and weak economies in its core Baltic market for a net loss of €118 million ($127.7 million) in 2024, following a net profit of €34 million in 2023.
Due to a number of problems including the powdered metal issue, the engines need a full shop visit significantly earlier than previously expected, which means the carrying amount of the replaced engine parts must be written off before the value of the new replaced part is capitalized as an asset.
This means the value of the parts is depreciated before the shop visits, rather than gradually until the end of 2028, resulting in a negative impact for 2024 of €41 million.
However, revenue grew last year and the airline is optimistic about 2025 as it expands capacity for its mainline and wet leasing businesses, marketed alongside SpaceX Starlink broadband internet for all passengers.
The airline expects this to be rolled out across its entire fleet of roughly 50 aircraft this year, with all installation work to be conducted in-house.
This will be helped by airBaltic’s completion last year of a maintenance hangar in Riga, giving it space for an additional two aircraft, while it also reinforced its maintenance recruitment with the launch of a technical academy in September.
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