The board of Latvia’s national airline airBaltic has decided to dismiss CEO Martin Gauss from his position as of Monday, according to the Ministry of Transport (MoT).
Effective immediately, airBaltic board member and Chief Operating Officer Pauls Cālītis will serve as acting CEO. Board member and Chief Financial Officer Vitolds Jakovļevs will also continue in his position.
During Monday’s shareholders’ meeting, the airline’s majority shareholder – the Ministry of Transport – expressed a vote of no confidence in Gauss. Following this, the board convened an extraordinary meeting and, based on the expressed lack of confidence, decided to remove Gauss from his role.
At the same time, the shareholders’ meeting approved the airline’s 2024 performance and previously announced losses of 118.159 million euros.
Minister of Transport Atis Švinka (P) emphasized the importance of seeing tangible results, noting that airBaltic is a strategically important company for Latvia and must be able to develop independently and adapt to external conditions.
airBaltic Board Chairman Andrejs Martinovs thanked Gauss for his leadership, dedication, and vision since 2011, highlighting that over more than a decade, Gauss led the airline through major transformations and growth, laying a strong foundation for its future.
“At the same time, confidence in airBaltic’s Board of Directors and the professional team that manages the company’s day-to-day operations, passenger traffic and operational management is maintained. The core business objectives remain unchanged and airBaltic continues to work towards the implementation of its strategy and the potential Initial Public Offering (IPO) of its shares,” added Martinov.
Acting CEO Pauls Cālītis stated that airBaltic continues operations with unwavering commitment to achieving its strategic objectives and that day-to-day operations will remain unaffected. He emphasized the strength and motivation of the airBaltic team and the airline’s readiness to ensure stability, continuity, and growth.
According to the Ministry, Cālītis is a seasoned aviation professional with a 30-year career at airBaltic. He began at the airline in 1995 as a pilot and gradually moved into leadership roles, including overseeing flight operations. In 2020, he became Chief Operating Officer and a member of the board.
The ministry also stressed that the company’s operations will not be disrupted. airBaltic remains a strategically significant enterprise for Latvia as the majority shareholder, ensuring national connectivity and direct contributions to the economy. The shareholders’ goal is to strengthen the airline’s competitiveness and continue progress toward the IPO.
As previously reported, in late January 2025, a deal was reached with Germany’s Lufthansa to invest 14 million euros in airBaltic. In exchange, Lufthansa Group will receive a convertible share, entitling it to a 10% stake in the company. After the potential IPO, this share will convert into regular shares.
Post-IPO, Lufthansa Group’s ownership level will depend on the market valuation, but the agreement ensures it will retain no less than 5% of airBaltic capital.
The deal is still pending approval from Germany’s Federal Cartel Office (Bundeskartellamt).
Currently, the Latvian state owns 97.97% of airBaltic shares, while 2.03% are held by financial investor Lars Thuesen’s Aircraft Leasing 1. The Latvian government has agreed that, following the IPO, it must retain at least 25% plus one share in the airline.
In 2024, airBaltic carried 5.2 million passengers, a 13% increase over the previous year, and operated 47 000 flights—up 7% year-on-year.
The airBaltic Group reported audited losses of 118.159 million euros for 2024, compared to a profit in the previous year, while revenue increased by 11.9%, reaching 747.572 million euros.