The Union of Greens and Farmers (ZZS) believes that Transport Minister Atis Švinka (P) has so far failed to provide the government and the Saeima with transparent and truthful information about the national airline “airBaltic,” which, in ZZS’s view, could effectively be regarded as “misleading and a prolonged concealment of problems in a company supervised by the Ministry of Transport.”
As the party informed the LETA news agency, the ZZS board calls on Minister Švinka not to mislead the government and the Saeima regarding the situation at “airBaltic” and to provide clear answers on how the company will use the short-term state loan and what its capacity is to repay it.
The ZZS board urges Švinka, without delay and by Monday, the 13th of April at 12:00, to provide substantive answers both to previously submitted questions about the situation at “airBaltic” and the requested short-term loan, as well as how the loan will be used and how the company plans to repay it to the state by August, and to address the findings of the State Audit Office regarding support to “airBaltic.”
In ZZS’s view, by providing a clear and truthful assessment, the transport minister must take responsibility for ensuring that the state loan is used appropriately and repaid within the set timeframe.
ZZS believes that the explanations provided so far by the minister do not give confidence
that the 30 million euros short-term loan will fundamentally resolve “airBaltic’s” financial problems.
“ZZS has received the State Audit Office’s opinion, which fully aligns with the arguments expressed by ZZS and points to a very high risk of the planned funding not being recovered, while also highlighting the unlawful nature of the draft decision prepared by the transport minister on providing support to ‘airBaltic’, for which responsibility must be borne by the minister,” emphasised Uldis Augulis, Deputy Chairman of the ZZS board.
The political party notes that the State Audit Office had already previously issued recommendations regarding state investments in “airBaltic” during the Covid-19 period, concluding that state oversight after these investments had not been sufficient, particularly with regard to strategically important decisions, and that reports submitted to the Cabinet of Ministers largely presented an overly optimistic assessment of the company’s situation.
The State Audit Office last year emphasised that further investments in the company without a comprehensive assessment of the business plan’s viability and sustainability are not advisable, as
the current model is unable to ensure repayment of obligations and state funds
are being used to maintain short-term cash flow, the party notes.
ZZS calls on Minister Švinka to provide a clear, data-based explanation of how “airBaltic” will be able to repay its existing 380 million euros debt to investors, along with additional interest expenses, from its operational income.
The party also seeks clarification as to why this debt has not yet been repaid. “It is unacceptable that, if the current policy pursued by Minister Švinka regarding oversight of ‘airBaltic’ continues, the state budget could incur losses exceeding 500 million euros if the state is forced to assume ‘airBaltic’s’ unmet obligations,” Augulis stated.
It has been reported that ZZS convened an extraordinary meeting on Friday to decide on the situation at the national airline “airBaltic,” the party informed LETA.
ZZS Saeima deputies believe that “airBaltic” has relied on state support for several years to stabilise its operations;
therefore, before deciding on another loan, broader information is needed about the situation in the company supervised by the Ministry of Transport.
It has also been reported that Minister Švinka plans to meet with the ZZS parliamentary faction next week to provide answers regarding “airBaltic” in connection with the planned 30 million euros loan.
“I have never hidden information. Over the past year, data has been publicly available both to experts and politicians, as well as to interested parties. Therefore, we will see how to move forward,” the minister said.
Asked whether he is confident that the Saeima will approve the loan to “airBaltic,” Švinka said that “there is no need to rush — clarity is required.” He added that the company continues to operate and that this financial instrument is necessary to stabilise the situation amid the challenging fuel price crisis.
It has also been reported that
the government’s decision on the 30 million euros short-term loan to “airBaltic” has not yet been approved
by the Saeima Budget and Finance Committee due to ZZS objections. The committee will return to the issue on the 14th of April after the Easter recess.
The Ministry of Transport has stated that external factors — the conflict in the Middle East, rising fuel prices, and the suspension of certain routes — have significantly affected the company’s costs, and the loan would ensure stable operations until the implementation of a new business plan.
It has been reported that the “airBaltic” group’s turnover last year increased by 4.2% compared to 2024, reaching 779.344 million euros. Meanwhile, the group’s losses amounted to 44.337 million euros, which is 2.7 times less than in 2024.
In 2025, the airline transported a total of 5.2 million passengers, which is 1% more than in 2024.
Last summer, the German national airline Lufthansa became a shareholder in “airBaltic.”
Currently, the Latvian state owns 88.37% of “airBaltic” shares, “Lufthansa” holds 10%, Danish investor Lars Thuesen’s company “Aircraft Leasing 1” holds 1.62%, and 0.01% is held by others. The company’s share capital is 41.819 million euros.
Following the planned initial public offering (IPO) of “airBaltic” shares, the size of “Lufthansa’s” stake will be determined by the IPO market price. The agreement also предусматривает that “Lufthansa” will retain at least 5% of the company’s capital after the IPO. On August 30, 2024, the Latvian government agreed that after the IPO the state must retain at least 25% plus one share in “airBaltic.”
Last August, the government decided that Latvia, like “Lufthansa,” would make a co-investment of 14 million euros in “airBaltic” ahead of the potential IPO.
However, taking into account the 2025 financial results and market conditions,
“airBaltic” has suspended the potential IPO
and currently does not consider it a viable source of capital for 2026, according to the company’s annual report.
The report indicates that despite expected improvements in operational and commercial performance, the airline will operate with negative free cash flow in 2026, and based on current forecasts, management expects that an additional capital injection of 100–150 million euros will be required to finance operations for the 2026/2027 winter season.
Švinka has stated that an IPO is not the only way to raise capital, and the airline’s management has been given a broad mandate to explore various financial instruments. Thus, the company’s task for 2026 is not only to reduce costs but also to attract capital.
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