Tirana tries to save national carrier Air Albania amid debts

The Albanian government is making a last-ditch effort to rescue Air Albania, the country’s national carrier, which has been grounded since late 2025 amid mounting debts, operational halts, and the withdrawal of its key partner, Turkish Airlines.

Founded in 2018 as a public-private partnership – with Turkish Airlines holding 49.12%, Albcontrol around 10%, and MDN Investment the rest – Air Albania once aimed to revive Albania’s aviation sector after the demise of Albanian Airlines. It launched operations with the Tirana-Istanbul route and briefly captured significant market share, peaking at 18% in 2021 when it ranked second overall.

However, the airline’s fortunes reversed sharply due to intense competition from low-cost carriers that flooded Tirana International Airport (TIA) with affordable flights to key European destinations. Wizz Air, which entered the Albanian market in 2017 and established a major base in Tirana by 2020, has dominated as the leading operator, often holding 30-40% or more of passenger traffic in recent years through aggressive route expansion and ultra-low fares.

Ryanair, entering later but rapidly scaling up, placed second in 2025 market analyses and announced a permanent base at TIA starting in 2026, with multiple aircraft stationed there and plans for dozens of new routes—further intensifying price wars that squeezed Air Albania out of most non-Istanbul markets. Other competitors, including easyJet, Pegasus Airlines, Lufthansa, Aegean Airlines, and Eurowings, have also expanded services to Albania, offering direct connections to major hubs in Italy, Germany, the UK, France, and beyond.

This low-cost surge made Albania one of Europe’s fastest-growing aviation markets but left Air Albania struggling with limited scale, high dependency on Turkish transit traffic, and inability to match budget fares.

By 2024, Air Albania’s market share had plummeted to around 3.4%, dropping further to 2.33% in 2025 as operations narrowed almost exclusively to Istanbul flights (2-3 daily). Turkish Airlines’ November 2025 decision to sell its stake and cease support – coupled with plans to launch its own direct Tirana-Istanbul and Ankara services (plus those of its low-cost subsidiary Ajet) – triggered widespread cancellations and a full suspension by December 2025. The carrier accumulated substantial debts, reportedly around $50 million owed to Turkish Airlines alone (with total liabilities potentially exceeding €100 million including leases, fuel, salaries, and airport fees), leading to lawsuits and license revocation by the Albanian Civil Aviation Authority.

In January 2026, the government transferred Albcontrol’s 10% stake to the Ministry of Economy and Innovation to consolidate control and explore takeover options, including assuming Turkish Airlines’ quotas and potentially partnering with an international operator. Proposed revival plans focus on resuming flights to diaspora-heavy destinations like Italy and the UK. Officials frame the intervention as vital for national connectivity and pride, but critics highlight years of mismanagement, opacity in finances, and failure to adapt to the low-cost-dominated landscape.

With Wizz Air and Ryanair now firmly controlling the market – driving down fares and boosting passenger numbers – any revived Air Albania would face steep challenges in regaining relevance without significant restructuring or subsidies. As of today, the airline remains dormant, with the government’s rescue bid seen as a final bid to prevent Albania from losing its flag carrier entirely.

The original article by EUalive’s partner Albanian Daily News (ADN) can be found here.

Caption: A corporate photo of an Air Albania aircraft dating from 2018 [@airalbania1]