Lufthansa Group has reinforced its position in the European aviation market by acquiring a 10% convertible stake in Latvia’s national carrier, airBaltic, for €14 million. This strategic move grants Lufthansa a seat on airBaltic’s Supervisory Board and deepens an already strong commercial relationship between the two airlines.
The investment builds upon an established wet lease agreement, allowing Lufthansa Group to operate up to 21 of airBaltic’s Airbus A220-300 aircraft during peak summer months and five in winter. The agreement, now extended until 2028, enhances Lufthansa’s operational agility and airBaltic’s role as a premier wet lease provider. This wet lease model has been a crucial factor in Lufthansa’s ability to scale operations efficiently while maintaining a high level of service quality.
Wet Leasing: A Strategic Advantage
AirBaltic’s fuel-efficient Airbus A220-300 fleet plays a crucial role in Lufthansa’s strategy to expand capacity while maintaining cost efficiency and sustainability. Wet leasing has emerged as a key solution for major carriers aiming to increase seasonal capacity without investing in additional aircraft.
Since pioneering the A220-300 in 2016, airBaltic has built a robust reputation as a leading wet lease operator. With a fleet of 50 A220s and 40 more on order, the airline is well-positioned to support Lufthansa’s network growth while ensuring flexibility and reliability for passengers.
Expanding Beyond Europe
While strengthening its European partnerships, airBaltic is also making global moves. The airline recently announced a collaboration with SUA Líneas Aéreas, a Latin American startup, to wet lease up to five Airbus A220-300 aircraft from October 2025. This agreement underscores airBaltic’s rising influence beyond Europe, offering leasing services alongside pilot training, IT solutions, and sustainability initiatives.
Lufthansa’s Growing Investment Portfolio
Lufthansa Group’s stake in airBaltic follows its recent 41% acquisition of ITA Airways, further solidifying its pan-European expansion strategy. The ITA Airways deal strengthens Lufthansa’s position in Southern Europe, granting it greater access to the highly competitive Italian market and transatlantic routes.
Additionally, Lufthansa is currently negotiating a 20% stake in Spain’s Air Europa, a move that would strengthen its position in the crucial Spain–South America travel corridor. Air Europa has drawn competing interest from Air France-KLM and International Airlines Group (IAG). Should Lufthansa successfully secure a stake, it would gain access to one of the most strategically important long-haul markets in Europe. Furthermore, IAG has reaffirmed their interest in TAP Portugal.
Industry Impact
Lufthansa’s investment in airBaltic reflects a broader industry trend, with European airlines leveraging strategic partnerships to optimise networks, reduce costs, and enhance connectivity. By integrating airBaltic’s modern fleet and operational expertise, Lufthansa is securing additional capacity while reinforcing its competitive edge in the evolving aviation landscape.
Furthermore, the acquisition of ITA Airways and the continued negotiations for Air Europa highlight Lufthansa’s long-term vision of consolidating market share across Europe. These investments collectively strengthen Lufthansa’s ability to compete with major European airline groups such as IAG and Air France-KLM.
With the deal expected to close in Q2 2025, pending antitrust approval, this move strengthens airBaltic’s standing as a premier wet lease operator while further entrenching Lufthansa’s dominance in European aviation. As airlines navigate shifting market dynamics, investments like these will be instrumental in shaping the future of air travel.
