Kulbergs suggests that Baltic countries should consider establishing joint airline in the future

RIGA - Establishing a joint airline would provide strategic benefits for all three Baltic countries in the long term, Latvian Prime Minister Andris Kulbergs (United List) told reporters after a meeting with Lithuanian Prime Minister Mindaugas Sinkevicius in Riga on Thursday.

The prime ministers of Latvia and Lithuania discussed the matter during today's meeting.

Once the issue of Latvian national airline airBaltic is resolved, Latvia, Lithuania, and Estonia could strategically explore the possibility of establishing a joint Baltic airline, said Kulbergs.

According to Kulbergs, Sinkevicius would be willing to discuss the proposal. At the same time, the Latvian prime minister emphasized that currently there were no specific proposals, but he would like to discuss the idea with the prime ministers of Lithuania and Estonia.

"From a strategic perspective, this would benefit all three countries in the long term," said Kulbergs. He believes that the establishment of a joint airline would also be beneficial from a security perspective.

As reported, airBaltic board has approved a business plan that, among other things, calls for raising EUR 225 million in bridge financing to improve liquidity, using the existing collateral package for the 2029 priority bonds.

In the long term, the company is expected to be recapitalized with up to EUR 225 million in new debt and EUR 100 million in new equity, while a portion of the existing 2029 bonds will be converted into company shares, with the remainder replaced by new, smaller debt of up to EUR 125 million.

The business plan also calls for the airline to operate 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.

On Wednesday, Saeima Budget and Finance Committee supported in principle a bill on the possible participation of the state in financial stabilization of airBaltic, including potential participation in the purchase of airBaltic bridge financing bonds in the amount of up to EUR 30 million, as well as capitalization of the existing bonds in the amount of EUR 50 million.

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 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.