The Lufthansa Group has entered into a wet lease agreement with airBaltic, enabling the Latvian carrier to operate flights on behalf of Lufthansa Group airlines, including Lufthansa, SWISS, and Austrian Airlines. This agreement allows Lufthansa Group to maintain operational efficiency and service continuity while utilising airBaltic’s fleet of Airbus A220-300 aircraft.
Understanding the Wet Lease Agreement
A wet lease is a contractual arrangement where one airline provides aircraft, crew, maintenance, and insurance to another airline. In this case, airBaltic supplies aircraft and flight crews, while Lufthansa Group retains control over route planning, scheduling, and ticket sales. This allows Lufthansa, SWISS, and Austrian Airlines to supplement their fleets without the immediate need for additional aircraft purchases or leases.
Under the current agreement, airBaltic operates select flights for Lufthansa Group airlines, particularly on short- and medium-haul European routes. The agreement helps mitigate capacity constraints and ensures service reliability, especially during peak travel seasons.
The SWISS-airBaltic Connection
One of the most visible results of this agreement is airBaltic’s operation of SWISS short-haul flights. This partnership, which started in November 2022, began with airBaltic flying from Zurich Airport (ZRH) to 30 destinations. Over time, this number has grown to 45 destinations as of June 2024. The collaboration has been critical for SWISS, particularly as the airline has faced supply chain issues impacting its Airbus A220 fleet.
Passengers on these flights will notice telltale signs of airBaltic’s presence: the lime green accents on the aircraft’s tail, winglets, and engine cowlings, as well as airBaltic safety cards, while seat headrest covers and onboard menus remain SWISS-branded.
Why airBaltic?
Lufthansa Group chose airBaltic as its wet lease partner due to several key factors:
- Fleet Modernity: airBaltic exclusively operates Airbus A220-300 aircraft, known for their fuel efficiency, lower emissions, and passenger comfort.
- Operational Reliability: With a track record of punctuality and strong service performance, airBaltic provides Lufthansa Group with a dependable partner.
- Scalability: The agreement enables Lufthansa Group to adjust capacity dynamically based on seasonal demand fluctuations.
- Financial Stability: In 2023, wet lease operations accounted for 15% of airBaltic’s total revenue (€100.7 million out of €667.9 million), making it a financially significant aspect of the airline’s business strategy.
Impact on airBaltic’s Operations
While airBaltic has gained revenue from wet leasing, it has also faced challenges. The airline has had to lease aircraft from other carriers to maintain its own flight schedules due to delays in Pratt & Whitney PW1900G engine maintenance, which have affected a portion of its A220 fleet. Despite this, airBaltic has continued to expand its wet lease services, operating not just for Lufthansa Group but also for Eurowings and SAS Scandinavian Airlines.
How This Affects Passengers
Travellers booking flights with Lufthansa, SWISS, or Austrian Airlines may find that their flight is operated by airBaltic. The aircraft will bear airBaltic’s branding and be staffed by airBaltic crews, but all onboard services, ticketing, and customer policies remain in line with the Lufthansa Group airline operating the route.
This arrangement ensures that Lufthansa Group can offer a consistent flight schedule, optimise fleet utilisation, and maintain high service standards, even during times of aircraft shortages or maintenance cycles.
Industry Context and Comparisons
Lufthansa Group’s approach mirrors similar strategies in the aviation industry, where major airlines increasingly turn to wet lease agreements to manage fleet shortages and enhance operational efficiency. For example:
- British Airways has previously partnered with Titan Airways for wet lease operations.
- Finnair has relied on Iberia-operated flights to address capacity gaps.
- Air France-KLM has used external operators to supplement their networks during peak periods.
Such agreements highlight the flexibility and resilience required in modern airline operations, especially amid ongoing supply chain disruptions, pilot shortages, and fleet renewal challenges.
The Future of the Lufthansa-airBaltic Partnership
As airlines navigate an evolving landscape, wet lease agreements remain a valuable tool for managing demand and maintaining operational continuity. Lufthansa Group’s collaboration with airBaltic showcases a strategic, cost-effective solution to ensure reliable flight operations while leveraging airBaltic’s modern and efficient fleet. This partnership reinforces both airlines’ positions in the European market and enhances connectivity for passengers across Lufthansa Group’s extensive network.
With schedules already planned through March 2025, the Lufthansa Group-airBaltic wet lease agreement is set to remain a key component of both airlines’ strategies, supporting efficiency and stability in an ever-changing aviation sector.
