Lufthansa becomes a shareholder in airBaltic

RIGA - German national airline Lufthansa has become a shareholder of Latvian national airline airBaltic, according to Firmas.lv.

Representatives of airBaltic informed LETA that the Latvian state now owns 88.37 percent of airBaltic shares, Lufthansa - 10 percent, financial investor Aircraft Leasing 1, owned by Danish businessman Lars Thuesen - 1.62 percent, while 0.01 percent are held by other shareholders.

The share capital of airBaltic has been increased by EUR 16.64 million to EUR 41,819,525. The changes in the company's share capital were registered in the Enterprises Register on Thursday, August 28.

The share capital of the airline was increased by issuing two new category mandatory convertible shares, according to the terms of the share capital increase of airBaltic.

One mandatory convertible share has been allocated to Deutsche Lufthansa Aktiengesellschaft, a strategic investor in airBaltic, in fulfilment of the obligations of the company and its largest shareholder, the Latvian state, under the investment agreement signed on January 29, 2025. The other mandatorily convertible share has been allocated to the Latvian state in accordance with the investment agreement of August 20, 2025.

The nominal value of each share of the new issue is EUR 8.32 million and the selling price of each share of the new issue is EUR 14 million.

Thus, currently the share capital of airBaltic consists of 251,795,252 ordinary shares with a face value of EUR 0.1 per share as well as two mandatory convertible shares with a par value of EUR 8.32 million per share.

The purpose of the share capital increase is to provide additional funding to airBaltic and support its growth plans.

Irrespective of the nominal value of the share, each mandatorily convertible share entitles to 31,474,410 votes at the General Meeting, as well as to receive dividends, pre-emptive rights to acquire newly issued shares in the event of a share capital increase and pre-emptive rights to acquire convertible bonds in the event of an issue of convertible bonds, as if the convertible share represented 31,474,410 shares.

As reported, in 2024, the airBaltic Group posted an audited loss of EUR 118.159 million, compared to a profit of EUR 747.572 million a year earlier, while the Group's turnover increased by 11.9 percent to EUR 747.572 million compared to 2023.

In the first half of this year, airBaltic's losses decreased several times to EUR 1.729 million, while the Group's turnover increased by 3 percent to EUR 349.648 million.

Until now, the Latvian state owned 97.97 percent of airBaltic's shares, while the financial investor, Danish businessman Lars Thuesen's Aircraft Leasing 1, owned 2.03 percent.

On June 30, 2025, the German competition watchdog, the Federal Cartel Office, allowed Lufthansa to acquire a 10 percent stake in airBaltic.

It is expected that the size of the Lufthansa Group's holding in airBaltic will be determined by the market price of the potential IPO following the initial public offering (IPO). The transaction also provides that Lufthansa Group will hold at least 5 percent of the capital of airBaltic after the potential IPO.

The Latvian government also agreed on August 30, 2024, that the state must retain at least 25 percent plus one share in airBaltic's capital after the IPO.