Air Malta turnaround attempt: fleet renewal and network consolidation

Air Malta is accelerating fleet renewal as it takes delivery of two A320neos in Aug-2019. The government-owned flag carrier took its first A320neo in 2018 and plans to transition to an all-A320neo fleet within the next few years as eight A320ceo family aircraft are phased out.

The A320neo is driving a 17% reduction in costs and enabling Air Malta to improve its inflight product, as all the aircraft will be outfitted with WiFi. The airline also recently introduced an improved business class service, although it is sticking with a convertible business cabin and blocked middle seats.

Air Malta turned its first profit in the fiscal year ending Mar-2018 after nearly 20 years of losses, earning it the CAPA 2018 Airline Turnaround of the Year Award. It was back in the red in the year ending Mar-2019 and is hoping that fleet renewal will help drive sustainable profitability.

A new network consolidation phase, which will focus expansion on existing rather than new destinations, should also help improve profitability. Air Malta launched a staggering 28 routes in 2018, impacting its profitability as LCC competition intensified.