Latvian taxpayers’ money can no longer be the sole source of support for the national airline airBaltic, Prime Minister Andris Kulbergs said in an interview with TV3’s programme 900 sekundes.
Kulbergs noted that he still needs to review airBaltic’s business plan and proposals regarding the company’s future operations. This week, he instructed officials to provide him with all necessary information for assessing the airline’s situation.
The Prime Minister emphasized that airBaltic remains a strategic asset for Latvia, but stressed that any long-term solution for the company must also involve private capital.
As one of the airline’s strengths, Kulbergs highlighted airBaltic’s existing aircraft delivery positions, which could become increasingly valuable at a time when other airlines are seeking opportunities to expand their fleets.
“This summer, a decision must be made—either one way or the other. There is no third option,”
Kulbergs said.
As previously reported, airBaltic has already repaid the first instalment of its state loan, amounting to 6.4 million euros.
Earlier this year, on the 16th of April, a majority of members of the Latvian Parliament approved a 30 million euros short-term state loan for the airline. The deadline for repayment of both the principal and interest is the 31st of August, 2026. The loan was granted without collateral.
The airBaltic Group reported a loss of 70.064 million euros in the first quarter of this year, 2.4 times higher than in the first quarter of 2025. At the same time, turnover increased by 12.3% to 49.086 million euros.
Company representatives attributed the increased losses to foreign exchange fluctuations, financing-related costs, reduced commercial support, and ongoing inflationary pressures across several cost categories.
For 2025 as a whole, the airBaltic Group recorded revenue of 779.344 million euros,
an increase of 4.2% compared with 2024. Annual losses amounted to 44.337 million euros, which was 2.7 times lower than the previous year.
The airline carried a total of 5.2 million passengers in 2025, representing a 1% increase compared with 2024.
Last summer, German flag carrier Lufthansa became a shareholder in airBaltic. Currently, the Latvian state owns 88.37% of the airline’s shares, Lufthansa holds 10%, Danish investor Lars Thuesen’s company Aircraft Leasing 1 owns 1.62%, and the remaining 0.01% is held by other shareholders. The company’s share capital stands at €41.819 million.
Following a future Initial Public Offering (IPO), Lufthansa’s ownership stake will be determined by the market valuation achieved during the offering. The agreement stipulates that Lufthansa will retain at least a 5% stake in airBaltic after the IPO. In August 2024, the Latvian government also decided that
the state must retain at least 25% plus one share in the airline following any future listing.
The government additionally approved a 14 million euros co-investment in airBaltic alongside Lufthansa ahead of the planned IPO.
However, according to the airline’s annual report, the IPO has been suspended due to the company’s 2025 financial results and current market conditions. AirBaltic no longer considers an IPO to be a viable source of capital in 2026.
The report further states that despite expected operational and commercial improvements, the airline is projected to continue generating negative free cash flow in 2026. Based on current forecasts, management expects that an additional capital injection of between 100 million euros and 150 million euros will be required to finance operations during the 2026/2027 winter season.
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