Government to ask Saeima for authorization to participate in raising up to EUR 30 million in additional funding for airBaltic

RIGA - The government will ask Saeima for authorization to participate in raising up to EUR 30 million in additional funding for national airline airBaltic, Transport Minister Rihards Kozlovskis (New Unity) told reporters following an emergency government meeting on Friday.

This does not constitute state aid, and the government will ask Saeima for authorization to participate in securing temporary financing if necessary, Kozlovskis emphasized. The amount could range "from zero to EUR 30 million."

He also said that the repayment deadline for a EUR 30 million state loan granted to airBaltic was to be extended until December 31.

Originally, the loan's maturity date was set for August 31. Saeima will also have to decide on extending the loan repayment deadline.

As reported, on April 16 Saeima approved issuing a EUR 30 million short-term state loan to airBaltic. The deadline for repayment of the principal and interest on the short-term state loan is August 31. The loan was issued without collateral.

By July 24, airBaltic had repaid the principal sum of the state loan and the interest payments stipulated in the agreement in the amount of EUR 12.9 million.

Earlier this week, airBaltic supervisory council approved a business plan that calls for raising EUR 225 million in temporary financing to improve liquidity, using the existing collateral package for the 2029 senior bonds, as well as reducing the planned aircraft fleet from 100 to approximately 40 aircraft by 2031, airBaltic informed LETA.

airBaltic expects to operate approximately 36 Airbus A220-300 aircraft by the end of 2026, compared to 54 aircraft currently, with the fleet gradually expanding to approximately 40 aircraft by 2031.

LETA also reported, airBaltic group’s revenue last year increased by 4.2 percent compared to 2024, reaching EUR 779.344 million. Meanwhile, the airBaltic group’s losses last year totaled EUR 44.337 million, which is 2.7 times less than in 2024.

The airline carried a total of 5.2 million passengers in 2025, which is 1 percent more than in 2024.

Last summer, Germany’s national airline, Lufthansa, became a shareholder in airBaltic. Currently, the Latvian government owns 88.37 percent of airBaltic’s shares, Lufthansa holds 10 percent, the company Aircraft Leasing 1, owned by Danish businessman Lars Thuesen, a financial investor, holds 1.62 percent, and 0.01 percent is held by others. The company’s share capital is EUR 41.819 million.

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