Latvia’s national airline airBaltic Group recorded losses of 128.2 million euros in the first half of 2026, compared with losses of just 1.7 million euros in the corresponding period of 2025, the airline’s representatives told LETA.
Meanwhile, the group’s revenue increased by 14.2% year-on-year, reaching 399.2 million euros in the first six months of 2026.
During the first half of the year, airBaltic carried a total of 4.4 million passengers, an increase of 15% compared with the same period last year.
Of these, 2.5 million passengers travelled on the airline’s own route network, representing growth of 3.9%.
The total number of flights operated, including aircraft, crew, maintenance and insurance (ACMI) leasing services, reached 42,300, an increase of 16.2%.
This included 24,000 flights operated on airBaltic’s own route network, up 5% year-on-year, and 18,300 ACMI flights, representing an increase of 35%.
The airline’s average passenger load factor in the first half of 2026 was 77.3%, one percentage point lower than in the corresponding period of 2025.
Adjusted earnings before interest, taxes, depreciation, amortisation and aircraft rental costs, as well as provisions for litigation (EBITDAR), amounted to 34 million euros, down 16.9 million euros compared with the first half of 2025.
According to airBaltic, revenue in the second quarter of 2026 reached 250.1 million euros, an increase of 15.3% compared with the same period last year.
However, the company recorded a loss of 58.1 million euros, compared with a profit of 27.6 million euros in the second quarter of 2025.
Passenger numbers increased by 17% to three million during the quarter.
Of these, 1.41 million passengers travelled on the airline’s own route network, representing growth of 3.2%.
The total number of flights operated in the second quarter, including ACMI leasing services, increased by 19.1% to 27,200.
The airline attributed its first-half revenue growth to a 7.4% increase in passenger transport revenue and a 36.5% rise in revenue from ACMI leasing services.
airBaltic emphasised that higher operating costs negatively affected profitability during the first half of 2026.
Foreign exchange fluctuations had a particularly significant impact on the company’s net financial results.
While currency movements generated a gain of 65.7 million euros in the first half of 2025, they resulted in a net loss of 21.2 million euros during the corresponding period of 2026.
Higher depreciation associated with fleet expansion and increased financing costs also contributed to the losses.
At the same time, airBaltic reported improvements in aircraft availability.
During the second quarter, the airline leased out an average of approximately 26 aircraft, compared with 19 aircraft a year earlier.
Fleet availability also improved significantly.
During the first half of 2026, airBaltic had no aircraft grounded due to Pratt & Whitney engine problems, compared with an average of 11 grounded aircraft in the first half of 2025.
According to the airline, the escalation of the conflict in the Middle East created a more challenging operating environment and affected profitability.
Fuel costs increased by 79.6% in the second quarter of 2026 compared with the same period last year, reaching 66.1 million euros.
Inflation also drove up personnel costs, carbon emission allowance expenses and other operating costs.
Airspace restrictions forced airBaltic to operate longer flight routes, while services to Tel Aviv and Dubai were suspended.
In response to higher fuel prices, the airline adjusted its summer capacity by cancelling approximately 5.7% of flights originally scheduled between March and October.
The total impact of higher aviation fuel prices on airBaltic’s financial results in the second quarter of 2026 was estimated at 29.3 million euros.
airBaltic President and CEO Erno Hildén stressed that the aviation industry continues to face significant pressure from external factors, including historically high aviation fuel prices affecting airlines across the sector.
“The current operating environment requires greater discipline and focus in managing the company.
“The airline’s priority is to strengthen airBaltic’s financial foundations and develop a more resilient operating model, with particular emphasis on efficiency, sustainable profitability and financial stability.
“The recently announced new business plan outlines a clear path towards achieving these objectives while maintaining airBaltic’s essential role in ensuring connectivity for Latvia and the wider Baltic region,” Hildén said.
Going forward, airBaltic will publish its operational performance figures in a Monthly Operating Report during the second half of each month, providing an overview of the airline’s key operating indicators for the preceding month.
In the first half of 2025, airBaltic Group reported revenue of 349.6 million euros and losses of 1.7 million euros.
For the full year 2025, the group’s revenue increased by 4.2% compared with 2024, reaching 779.344 million euros.
Meanwhile, its annual losses amounted to 44.337 million euros, approximately 2.7 times lower than in 2024.
The airline carried a total of 5.2 million passengers in 2025, an increase of 1% compared with the previous year.
As previously reported by LETA, airBaltic has initiated the restructuring of its financial obligations under the Chapter 11 procedure established by US law.
The airline has received binding commitments from lenders to provide up to 350 million euros in new debtor-in-possession (DIP) financing to support liquidity and operations during the Chapter 11 process.
airBaltic has already received the first financing tranche of 140 million euros.
Of this amount, 78.925 million euros will be used to purchase eight aircraft and seven engines.
The financing was arranged by Strategic Value Partners (SVP), with commitments from Barclays, Hayfin Capital Management, Morgan Stanley, Oaktree Capital Management and Strategic Value Partners.
The interest rate is SOFR plus 8%, currently equivalent to approximately 12%.
However, the financing arrangement also involves additional fees of up to 52.5 million euros.
As a result, the previous plan to raise up to 257 million euros from bondholders at an annual interest rate of 25% will not proceed.
Meanwhile, a bondholder group known as the Ad Hoc Group has filed objections in court concerning the terms of the DIP financing and its potential impact on bondholders’ collateral.
The Chapter 11 procedure protects airBaltic from creditor claims until the restructuring of its obligations is completed.
The airline has also stated that flights and customer services will continue as usual.
All flights will operate according to the planned schedule, existing tickets and reservations remain valid, and passengers can continue purchasing tickets and travelling with airBaltic as before.
The restructuring process is expected to result in a reorganisation plan that must be approved by the court.
The process is currently expected to conclude by mid-2027.
As previously reported, airBaltic bondholders approved the capitalisation of the next two bond interest payments in August, along with several other measures intended to provide the airline with additional flexibility in implementing its revised business plan.
Bondholders agreed that interest payments due on 14 August and 14 November 2026 would be added to the principal amount of the bonds rather than paid in cash.
They also approved a temporary waiver of minimum liquidity requirements until November 2026.
Germany’s national airline Lufthansa became an airBaltic shareholder in the summer of 2025.
Currently, the Latvian state owns 88.37% of airBaltic shares, while Lufthansa holds 10%.
Aircraft Leasing 1, a company owned by Danish businessman and financial investor Lars Thuesen, holds 1.62%, with the remaining 0.01% owned by other shareholders.
The company’s share capital amounts to 41.819 million euros.