AirBaltic official indicates necessary investment of about 250 million euros for the company
airBaltic, the national airline of Latvia, is currently undergoing a significant transformation. After the dismissal of CEO and president Martin Gauss, a search for a new leader is underway [1].
The airline industry is facing significant costs related to oil prices, a factor that heavily impacts the aviation sector. The ongoing Israeli-Iranian conflict and Trump's tariff wars have contributed to fluctuations in oil prices, with the latter potentially indicating a positive trend [2][6].
Despite the operational growth of airBaltic, the company remains financially challenged, running at a loss while undergoing major restructuring. However, recent improvements are evident. In June 2025, airBaltic's load factor hit a record 84.1%, with passenger numbers increasing slightly year-over-year despite fewer flights, indicating improved efficiency and strong demand [1].
The company's plans for capital strengthening and potential IPO are estimated to be around 250 million euros [7]. Martinovs, the company's supervisory board chairman, stated that the amount needed from the state depends on the shareholder [4].
Regarding future plans and investment, airBaltic is preparing for a potential IPO in 2025 or 2026, which involves significant state and strategic investor involvement. The Latvian government has agreed that the state must retain at least 25% plus one share in airBaltic's capital after any IPO [5].
Latvia has offered minority stakes (up to approximately 10%) in airBaltic for around EUR 14 million to Estonia, Lithuania, and Germany’s Lufthansa Group. However, Estonia declined the offer citing airBaltic's large losses and the unsuitability of investing public funds in a loss-making company [3]. Lithuania has not yet agreed to acquire a stake because the information provided by Latvia was insufficient; Lithuanian officials have requested more detailed financial and operational data before proceeding [4].
Interim CEO Pauls Calitis mentioned in a recent interview that at best, an airBaltic IPO could occur at the end of 2025 or in early 2026 [8]. Martinovs confirmed that the company's plan is to go to an IPO and they know how much they need [9].
Martinovs also mentioned that very good candidates have applied for the position of president of airBaltic, with around 40 candidates in total [1]. Martinovs did not specify a specific amount needed for investment, but he stated that if airBaltic does not get access to 250 million euros, they are discussing assumptions [4].
In summary, airBaltic is operationally strong but financially still loss-making, requiring careful state-backed restructuring and investment to support its planned IPO and future growth. State involvement from Latvia continues, while Estonia is hesitant and Lithuania remains undecided pending further information. The overall needed investment for the IPO and restructuring is in the tens of millions of euros, with EUR 14 million cited as the offered price for minority stakes from prospective investors [3][4].
The Latvian government aims to retain at least 25% plus one share in airBaltic's capital after its planned Initial Public Offering (IPO), approximately totaling 250 million euros [5]. The European Union (EU) might consider investing in airBaltic as part of the strategic involvement in the company's IPO, providing potential finance for the airline's restructuring and growth [implied].
