RIGA/FRANKFURT - The Ministry of Transport of Latvia, airBaltic, and Lufthansa Group announce the signing of an agreement for Lufthansa Group to invest EUR 14 million in airBaltic for a minority stake, and Supervisory Board seat.
In return for its investment, Lufthansa Group will receive a convertible share granting a 10% stake, which will be issued at a subscription price of EUR 14 million and converted into ordinary shares upon a potential IPO of airBaltic. After IPO, the size of Lufthansa Group’s stake will be determined by market pricing of the potential IPO, with Lufthansa Group’s holding amounting to no less than 5% of airBaltic.
The transaction builds on the existing strategic partnership between Lufthansa Group and airBaltic. Lufthansa Group will also appoint a Supervisory Board member upon closing of the investment. The closing of the transaction is planned for Q2 2025, and is subject to antitrust review.
The deal provides airBaltic with additional funding and supports its growth plans, which include the expansion of wet lease agreements, and recognizes airBaltic’s leading market position and unique hybrid business model.
The transaction strengthens Lufthansa Group’s role as a strategic partner of airBaltic.
airBaltic in brief:
airBaltic (Air Baltic Corporation AS) is the leading airline in the Baltics and one of Europe’s fastest-growing carriers. As a hybrid airline, it leverages the upsides of both traditional network and low-cost carriers. Through a network of more than 130 routes from Riga, Tallinn, Vilnius, Tampere and, seasonally, Gran Canaria, airBaltic connects the Baltics with over 70 destinations across Europe, the Middle East, North Africa, and the Caucasus. Founded in 1995, today airBaltic operates one of Europe’s youngest fleets, consisting of 49 Airbus A220-300 aircraft, and employs over 2 700 professionals. The company is majority-owned by the Latvian state, which holds a 97.97% stake, with the remaining 2.03% owned by private shareholders.
airBaltic's commitment to excellence is recognized by numerous prestigious awards including the Best Airline in its region by Skytrax for three consecutive years. In 2022, the International Air Transport Association (IATA) recognized airBaltic with the Diversity and Inclusion Team Award. Furthermore, in 2023, APEX awarded the company the Passenger Choice Award for Best Cabin Service in Europe, and in 2024 airBaltic also received the APEX Four Star Major Airline Award, recognizing its commitment to providing a high-quality travel experience. In 2024, the airline was awarded the PROS AI Innovator Award for leveraging AI to drive transformative outcomes and optimize operations.
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