Prosecutor's Office Launches Review of Official Decisions on airBaltic

The Prosecutor General's Office has launched a review to determine whether the actions and decisions of responsible officials concerning the economic and financial operations of national airline "airBaltic" comply with legal requirements. The review was initiated following an application from Prime Minister Andris Kulbergs, as confirmed by the prosecutor's office.

This is not the first time the prosecutor's office has examined matters related to airBaltic. In late 2024, a review into the government's decision to reduce the airline's share capital by €571.293 million to cover losses concluded that no violations had occurred.

Currently, airBaltic is seeking to stabilize its financial situation. The company plans to secure short-term financing from bondholders to avoid default risk, with a meeting scheduled for August 3. airBaltic board chairman Andrejs Martinovs confirmed that the meeting has been officially announced.

The airline's financial results for 2025 show improvement. Group revenue rose by 4.2% to €779.344 million, while losses decreased 2.7 times to €44.337 million. Passenger numbers increased by 1% to 5.2 million.

Last summer, Germany's Lufthansa became a shareholder in airBaltic, currently holding 10% of shares. The Latvian state owns 88.37%, with other minority shareholders holding the remainder. The company's initial public offering (IPO) has been postponed due to market conditions, and it is not considered a potential capital source for 2026.

According to the annual report, airBaltic expects negative free cash flow in 2026 and estimates that an additional capital injection of €100 to €150 million will be needed for the 2026/2027 winter season.