VALETTA, MALTAMalta's loss-making flag carrier Air Malta lays off nearly half of its workers and revises its fleet plans to save 15 million euros (USD17 million) a year.

The airline confirmed that more than 400 of the 890 employees would be laid off. As part of the restructuring plan, Air Malta will also terminate its ground handling operation in the second quarter of 2022.

The Maltese national carrier has currently been making a loss of EUR170,000 (USD193,000) a day.

In another cost-saving measure, Air Malta also announced that it had dropped its plans to acquire two A321-200NX(XLR)s as the airline already ditched its target to launch new long-haul routes. In 2021, the airline had agreed with the European planemaker to convert three A320neos on order to the two new longer-range Airbus A321XLRs.

Air Malta's current fleet comprises three Airbus A320-200s and four A320neos.