airBaltic needs to attract strategic investor so the company does not have to rely on taxpayer money every year - Kulbergs

RIGA - National airline airBaltic needs to attract a strategic investor who would provide assurance that the company will not require taxpayer money every year, Prime Minister Andris Kulbergs (United List) said at a joint press conference with President Edgars Rinkevics on Wednesday.

The airline is strategically important to Latvia, said Kulbergs. However, the way the company operates now, seeking a government bailout at the last minute, is not the best way. It must be made clear to the people of Latvia whether airBaltic can continue to operate on its own and with its finances, or not, he said.

Kulbergs believes that an investor has to be found who will ensure confidence in the company's viability without depending on state funding. Kulbergs hopes that he will be able to discuss all the details much more openly and in greater detail in the near future.

As reported, airBaltic's losses last year amounted to EUR 44.337 million, which is 2.7 times less than in 2024. Last year, airBaltic's turnover increased by 4.2 percent compared to 2024 and amounted to EUR 779.344 million.

In 2025, the airline carried a total of 5.2 million passengers on its route network, an increase of 1 percent compared to 2024.

At the end of August last year, German national airline Lufthansa became a shareholder in airBaltic. Currently, the Latvian state owns 88.37 percent of airBaltic shares, Lufthansa - 10 percent, financial investor Aircraft Leasing 1, owned by Danish businessman Lars Thuesen - 1.62 percent, and other shareholders - 0.01 percent. The company's share capital is EUR 41.819 million.

After the initial public offering (IPO) of airBaltic shares, the size of Lufthansa's stake will be determined by the potential IPO market price. The transaction also provides that Lufthansa will own at least 5 percent of airBaltic's capital after the potential IPO.

On August 30, 2024, the Latvian government agreed that the state should retain at least 25 percent plus one share in airBaltic's capital after the IPO. On August 19, 2025, the government decided that Latvia, like Germany's Lufthansa, would make a co-investment of EUR 14 million in airBaltic ahead of a potential IPO.

However, given the 2025 financial results and market conditions, airBaltic has suspended its planned IPO and does not currently view it as a potential source of capital for 2026, according to airBaltic’s annual report.

According to airBaltic, despite the expected improvement in operational and commercial performance, the airline will operate with a negative free cash flow in 2026, and, based on current forecasts, management expects that an additional capital injection of EUR 100 to 150 million will be required to finance operations for the 2026/2027 winter season.