Prime Minister: Talks Underway with Three Potential airBaltic Investors
Latvian Prime Minister Andris Kulbergs has stated that negotiations are ongoing with three potential investors for the national airline airBaltic. He hopes to reach an agreement, while reiterating that the state's stake should be minimized.
Prime Minister Andris Kulbergs (AS) revealed in an interview with Latvian Radio on Monday that talks are currently underway with three potential investors regarding an investment in Latvia's national airline airBaltic. The politician expressed hope that an agreement could be reached with one of the partners, but did not provide any further details about the investors. Kulbergs also emphasized that the state's share in airBaltic should be reduced to a minimum, as, in his view, the state should not be involved in this business.
airBaltic has been seeking ways to stabilize its financial situation for some time, reviewing its business plan and attracting investors and new financing. The group's turnover last year reached €779.344 million, an increase of 4.2% compared to 2024. Meanwhile, losses decreased 2.7 times to €44.337 million. In 2025, airBaltic carried 5.2 million passengers, 1% more than the previous year.
Last summer, Germany's national airline Lufthansa became a shareholder of airBaltic. Currently, the Latvian state holds 88.37% of shares, Lufthansa 10%, Danish businessman Lars Thuesen's company Aircraft Leasing 1 1.62%, and others 0.01%. The company's share capital is €41.819 million.
Following airBaltic's initial public offering (IPO), Lufthansa's stake will be determined by the market price, and the transaction stipulates that Lufthansa will hold at least 5% of the capital after the IPO. On August 30, 2024, the Latvian government agreed that the state should retain at least 25% plus one share after the IPO. Last August, the government also decided to make a co-investment of €14 million together with Lufthansa ahead of the potential IPO.
However, due to the 2025 financial results and market conditions, airBaltic has suspended the IPO and no longer considers it a potential source of capital for 2026. The annual report states that, despite expected operational improvements, the airline will have negative free cash flow in 2026, and an additional cash injection of €100 to €150 million will be needed to finance operations for the 2026/2027 winter season.
