Kozlovskis: airBaltic Business Plan No Longer Focuses on Global Growth

Transport Minister Kaspars Kozlovskis has indicated that the business plan of airBaltic no longer focuses on global expansion. He promised to provide more detailed comments on the plan at the end of summer, acknowledging the difficulty of balancing due to commercial secrecy.

The minister emphasized that the Ministry of Transport expects a well-founded expertise and evaluation, not hopes for a specific outcome. The key in the business plan is to understand the fleet's efficiency – how it generates the best income relative to costs. Kozlovskis noted that the discussion is not about a clearly defined next state investment, but rather about attracting investments and investors.

When asked about a possible downsizing of operations, the minister declined to comment but added that the business model can no longer be one where the state simply invests a sum "x" when a dead end is reached. He refrained from mentioning specific amounts, stressing that a set of preconditions must be met first. If a strategic investor appears with real funding, then the state's participation must be considered, but it is not possible to simply write off losses of 150–200 million euros.

Recall that airBaltic's group turnover last year increased by 4.2% to €779.344 million, while losses decreased 2.7 times to €44.337 million. In 2025, the airline carried 5.2 million passengers – 1% more than in 2024. Last summer, Germany's national airline Lufthansa became a shareholder, owning 10% of shares, while the state holds 88.37%.

The initial public offering (IPO) has been suspended, and the company no longer considers it a capital source for 2026. The annual report states that despite operational improvements, airBaltic will operate with negative free cash flow in 2026 and will need an additional cash injection of €100–150 million for the 2026/2027 winter season.