Andris Kulbergs
The topic of the airline’s future has once again been in the spotlight following statements by Minister of Transport Richard Kozlovskis that airBaltic may need additional state support in the summer.
According to BB.lv, the company is operating steadily, but its financial situation remains difficult. In the first quarter of this year, airBaltic Group’s losses exceeded EUR 70 million, which is more than double the figure for the same period last year.
The issue of financing is becoming more and more urgent
Despite revenue growth, results continue to be affected by rising costs, currency fluctuations and a reduction in certain commercial support.
For passengers, the situation does not mean any changes yet. Flights are operating as usual, and the company’s management emphasizes the stability of operations.
However, even with the expected improvement in commercial performance, the airline may face a cash shortage in the coming years.
Management estimates that the 2026/2027 winter season will require additional funding of between €100 million and €150 million.
Previously, one of the possible sources of capital was considered an initial public offering on the stock exchange. However, after the deterioration of financial results and changes in the market situation, the company temporarily abandoned these plans.
Today, the Latvian state remains airBaltic’s largest shareholder, holding more than 88% of shares. German airline Lufthansa holds 10% of the capital.
The new government faces a choice: how to ensure the financial sustainability of the national carrier and what role the state and private investors should play in this. A decision on the future of airBaltic should be made as early as this summer.
