Latvia’s national airline, airBaltic, reported audited losses of 118.159 million euros for the past year, compared to a profit in the previous year. However, the group’s turnover increased by 11.9% compared to 2023, reaching 747.572 million euros, according to the company’s public disclosure.
Meanwhile, airBaltic’s turnover last year amounted to 743.733 million euros, which is 12% more than in 2023, while the company’s losses reached 118.803 million euros, compared to a profit in the previous year.
In the management report of the annual review, it was noted that the losses in 2024 were due to several factors.
These included, as in 2022 and 2023, a significant shortage of spare aircraft engines, which prevented airBaltic from operating flights at full capacity. As a result, the airline had to lease aircraft with crew from other operators during the active summer months to maintain operations. Furthermore, commercial support from engine manufacturer Pratt & Whitney was significantly lower in 2024 than in 2023.
The losses were also attributed to an additional 40.4 million euros in non-operating costs related to accelerated engine part depreciation, as Pratt & Whitney engines required technical maintenance earlier than initially planned, partly due to an issue with powder metal.
The financial results were also affected by 32 million euros in losses from the depreciation of the euro against the US dollar and the revaluation of dollar-denominated liabilities.
In addition to the challenges in core operations and capacity limitations caused by the shortage of Pratt & Whitney engines, the airline’s second-half performance was also impacted by a macroeconomic downturn in its key markets, leading to reduced profitability, the management report states.
As previously reported, the airBaltic Group made an audited profit of 33.652 euros million in 2023, compared to losses in the previous year, while its turnover increased by 33.5% compared to 2022, reaching 667.982 million euros.
In 2023, airBaltic’s audited turnover was 664.289 million euros, which is 33.2% more than in 2022, and the company achieved a profit of 33.852 million euros, compared to losses in the previous year.
The Latvian state owns 97.97% of airBaltic shares, while the financial investor, Danish entrepreneur Lars Tusen, through his company Aircraft Leasing 1, owns 2.03%.