PM Silina does not rule out injection of additional funds in airBaltic

RIGA - An injection of additional government funds into Latvia's national carrier airBaltic is not being ruled out, Prime Minister Evika Silina (New Unity) said Thursday in an interview on Latvian Radio.

The prime minister indicated that a regional airline like airBaltic always needs to develop, and this requires additional investment.

It is necessary to think how to support airBaltic, taking into account the airline's contribution to the Latvian economy, the prime minister argued.

Asked by a reporter whether the additional financing could come from the government budget, Silina said that "this is never ruled out". "We, as a shareholder, must always be ready to operate in this changeable world," she said.

According to Silina, there have been signals from airBaltic about the need for additional financing, but the company has not made such a request to the government. airBaltic is currently looking for more partners to raise money, the prime minister said.

As reported, Transport Minister Atis Svinka (Progressives) told LETA on Tuesday that airBaltic needs to assess other private capital-raising instruments besides the initial public offering (IPO).

Svinka said that the Cabinet of Ministers met on Tuesday with the new CEO of airBaltic, Erno Hilden, who presented his experience, vision, as well as tasks and plans for the near future.

At the same time, he pointed out that airBaltic needs to raise private capital in 2026 and was therefore again tasked with assessing capital market opportunities and preparing an offer.

Asked whether the issue of additional public funding was not discussed at the Cabinet meeting, the minister said that such issues were not discussed. "This is a new situation, because the company does not come at the last minute when something is needed, but comes with its own vision," Svinka added.

At the same time, the government discussed that the airBaltic base should remain in Riga, the state should retain at least 25 percent plus one share in airBaltic's capital, as well as increasing efficient and economically viable connectivity from Riga.

As reported, Hilden took up his position as CEO of airBaltic on December 1, 2025.

On April 7 2025, the Supervisory Board of airBaltic decided to dismiss the Chairman of the Management Board and CEO Martin Gauss.

In 2024, airBaltic concern sustained EUR 118.159 million in audited loss, while the concern's turnover increased 11.9 percent to EUR 747.572 million.

At the end of August 2025, German national airline Lufthansa became a shareholder in airBaltic. Currently, the Latvian state owns 88.37 percent of airBaltic shares, Lufthansa - 10 percent, Aircraft Leasing 1, owned by Danish businessman Lars Thuesen, owns 1.62 percent, and 0.01 percent of airBaltic shares belong to other shareholders. The company's share capital is EUR 41.819 million.

After the IPO, the size of Lufthansa Group's holding will be determined by the potential IPO market price. The transaction also provides that Lufthansa Group will own at least 5 percent of the capital of airBaltic after the potential IPO. The Latvian government also agreed in August 2024 that the state must retain at least 25 percent plus one share in the capital of airBaltic after the IPO.