Kozlovskis: Repayment deadline for €30 million airBaltic loan not changeable

Latvian Transport Minister Rihards Kozlovskis (JV) said in an interview that the final repayment deadline for the €30 million state loan granted to national airline airBaltic is not subject to change. He noted that the deadline was approved by the Saeima (parliament), so it cannot be altered. The Ministry of Transport expects July to be an intensive month as the company's development vision and business plan are being evaluated. By August, there should be clarity on next steps, including a potential investor. If an investor is identified, the state will have to decide whether to retain its stake and how large it should be.

Kozlovskis stressed that fundamental criteria are Riga as the airline's base and tax payments in Latvia. The loan's interest rate is not disclosed due to commercial confidentiality.

On April 16, Saeima deputies approved the short-term state loan of €30 million to airBaltic. The principal and interest repayment deadline is August 31, and the loan is unsecured. At the end of May, airBaltic made its first repayment of €6.4 million.

In 2025, airBaltic Group's revenue increased by 4.2% to €779.344 million, while losses decreased 2.7 times to €44.337 million. Passenger numbers reached 5.2 million, up 1% from the previous year.

Currently, the Latvian state holds 88.37% of airBaltic shares, Lufthansa 10%, Danish businessman Lars Thune's company Aircraft Leasing 1 1.62%, and others 0.01%. Lufthansa became a shareholder last summer. After a planned initial public offering (IPO), Lufthansa would hold at least 5%, and the state would retain at least 25% plus one share. In August 2024, the government and Lufthansa each made a pre-IPO co-investment of €14 million.

However, airBaltic has suspended its IPO due to 2025 financial results and market conditions, and no longer considers it a potential capital source for 2026. The company's annual report states that in 2026 it will have negative free cash flow and will need an additional €100–150 million to finance the 2026/2027 winter season.