BAKU, Azerbaijan - Azerbaijan Airlines will end its use of aircraft leased with crews from a Lithuanian carrier after the contract expires on Nov. 1, 2026, AZAL Chief Commercial Officer Jamil Manizade said.
After the agreement ends, the flights will be operated by AZAL aircraft and crews, Manizade said in an interview on Hamid Hamidov’s “Let’s Talk?” program.
Manizade said the leased aircraft were needed after the pandemic, when travel demand recovered quickly and AZAL lacked enough aircraft and crews to expand its route network. The airline used outside capacity to enter new markets without waiting for aircraft already on order.
That need is now receding, he said. AZAL has received six aircraft since the beginning of 2026, with additional deliveries expected.
Why Ticket Prices Change
Manizade attributed major fare fluctuations to AZAL’s automated revenue-management system. It considers aircraft occupancy, seasonality, competition, major events and changes in demand for specific travel dates.
Under the airline’s preferred sales model, about half the seats are sold in advance at low and medium fares. Those categories contain several price levels, and availability changes as seats are sold.
Buying early usually improves a passenger’s chances of finding a lower fare, Manizade said, but does not guarantee the minimum price. A fare can rise or fall closer to departure if the system determines that demand is weaker or stronger than expected.
He did not promise broad price reductions on popular routes. While acknowledging the effect of competition, Manizade said AZAL does not always seek to match low-cost carriers on price.
“We prefer to compete through the product, the schedule and comfort,” he said, citing the Istanbul route.
Lower fares may carry restrictions on itinerary changes or exclude services from the base price. AZAL plans to expand packages with different combinations of flights, baggage, meals and seat selection.
Manizade said direct and connecting itineraries are different products sold in different markets. AZAL itself offers more attractive fares to some transfer passengers to encourage them to travel through Baku.
Why Buta Airways Disappeared
The commercial chief said Buta Airways had used a fleet that was not well suited to a low-cost model.
Aircraft with 106 seats cost less to operate per flight, but the cost per passenger remained high. That left the carrier choosing between losses and higher fares that conflicted with the concept of a budget airline.
Operating two brands, products and commercial strategies also created an additional burden for a relatively small fleet. As part of its transformation, AZAL decided to concentrate on a full-service model.
Manizade said AZAL has been profitable since 2022 and has received no state investment since 2024. Targeted subsidies for Nakhchivan flights remain in place.
Student Discounts and Passenger Service
AZAL is preparing a Students Club program that it hopes to extend across its route network. The airline aims to announce the program before the end of the year, though Manizade said the timetable could change and did not disclose its terms.
He also acknowledged that consistent service remains a problem, saying individual poor experiences can undermine the work of the entire airline.
AZAL has brought its previously outsourced call center in-house. Its service target is to answer 80% of calls within 20 seconds. Demand spikes during mass cancellations and schedule changes, and the airline sees automation and digital services as the long-term solution.
Ten Million Passengers by 2030
AZAL’s average seat occupancy was 83% in the first eight months of 2026, Manizade said. Azerbaijani citizens accounted for about 40% of international passenger traffic, foreign travelers beginning or ending trips in Azerbaijan made up 20%, and transfer passengers accounted for the remaining 40%.
By 2030, the airline plans to renew its fleet, carry 10 million passengers annually, raise the transfer share to 50% and expand its network from about 53 to 80 destinations.
Manizade said infrastructure at Baku airport is one constraint on that growth and that the airline cannot deliver all its plans with the existing capacity. He did not confirm a timetable for building a third terminal.
Sources: Vesti Baku; “Let’s Talk?” with Hamid Hamidov.