Swiss International Air Lines plans a significant reduction in its externally leased aircraft capacity in the coming years. As CFO Dennis Weber announced during the presentation of the first-half results, the number of aircraft operated under wet lease agreements is to be reduced from the current 27 to approximately 20 by summer 2027.
In this process, the airline leases aircraft, including crew, maintenance, and insurance, from partner companies to compensate for its own capacity bottlenecks. The planned reduction primarily affects collaborations with partner companies Helvetic Airways and Air Baltic. Management cites a more precise data basis and improved coordination in the deployment planning of its own aircraft, engines, cockpit, and cabin crew as the main reasons for the reduction. Despite the intended decrease, wet leases remain a tool for the Lufthansa subsidiary to prevent flight cancellations on feeder routes for long-haul flights. On its own fleet side, following a period of operational uncertainty, technical consolidations are emerging for short-haul routes, along with an expansion of long-haul capacity. The company management classifies the current fiscal year as a consolidation phase in order to achieve better profitability and capacity increases again from 2027 onward.
Reorientation of the external rental fleet and partnerships
In its current summer flight schedule, the Swiss airline is relying heavily on leased capacity. Up to 27 aircraft from third-party providers are currently operating for Swiss to cover the planned flight schedule on European regional and short-haul routes. The main partners in this arrangement are the Swiss airline Helvetic Airways and the Latvian airline Air Baltic. The costs for such agreements generally exceed the expenses for operating the aircraft in-house, which is why reducing the leased fleet by approximately a quarter represents a significant lever for lowering variable operating costs.
Regarding the future structure of the partnerships, management pointed out that the exact distribution of the remaining contracts has not yet been finalized. The collaboration with Helvetic Airways is to continue, while the scope of the cooperation with Air Baltic is currently under review. Refining internal duty rosters and maintenance cycles will allow the company to operate more flights with its own aircraft and personnel, thereby reducing its reliance on external service providers.
Technical stabilization of the short-haul fleet and spare parts supply
A key reason for the existing need for wet-leased aircraft was the ongoing technical problems with the Pratt & Whitney engines in the narrow-body aircraft. The shortage of functioning engines led to groundings for the Airbus A220 series. To maintain operations for the remaining fleet, the company decommissioned two A220-100 aircraft and salvaged their engines as spare parts for the rest of the fleet. Three more A220s are currently grounded, operational but without working engines. Despite these measures, the finance department is not currently questioning the continuation of the A220-100 sub-fleet.
At the A320neo fleet level, which is also affected by the global maintenance bottlenecks at Pratt & Whitney, three to four aircraft are currently out of service. However, the airline anticipates a gradual improvement in the situation. The engine manufacturer is working on extending maintenance intervals and increasing the mechanical stability of the components, which should reduce aircraft downtime in the coming months.
Expansion of long-haul capacity and cabin renewal
In the long-haul segment, the airline is pushing ahead with the modernization and expansion of its fleet. The number of wide-body Airbus A350 aircraft is to be increased from the current two to a total of five by the end of the year. These models offer greater seating capacity and range, which should strengthen the position of the Zurich hub on intercontinental routes.
In parallel, the refurbishment of the existing long-haul fleet has begun. The first Airbus A330 aircraft is currently undergoing cabin refurbishment at a maintenance facility in Hong Kong. The conversion includes the installation of new seat configurations in all classes. The return of the first refurbished aircraft to regular service is expected in three to four months. The entire A330 fleet will then gradually undergo this modernization process.
Economic development in Geneva and medium-term forecast
Business development at the two Swiss operating locations is progressing differently. While the long-haul business at Geneva Airport, with its connection to New York, is profitable, the European business from Geneva continues to operate at a loss. Management aims to bring the short-haul connections from Geneva into profitability by 2027, for which capacity adjustments and the development of kerosene prices will be crucial.
The current year is explicitly defined by management as a transition period. The combination of reduced wet-lease costs, the gradual return of grounded aircraft, and the commissioning of new long-haul aircraft is intended to improve operational efficiency. From 2027 onward, the airline plans to achieve sustainable growth in passenger numbers and flight capacity based on a consolidated cost structure.