Tallinn Airport outperforms Riga and Vilnius in revenue despite fewer routes
Tallinn Airport CEO Riivo Tuvike says the airport remains the Baltics' most profitable despite offering fewer direct destinations than Riga or Vilnius, thanks to diversified income sources. The airport also set passenger records this summer and is planning a major expansion.
Although Tallinn Airport offers fewer direct destinations than its counterparts in Riga and Vilnius, it remains the most profitable airport in the Baltic region, according to airport chief Riivo Tuvike. Last year the airport generated 74 million euros in revenue.
The airport's financial strength comes from not depending solely on aviation fees, which account for only about 30% of income. Substantial revenue also comes from terminal retail, parking, aircraft maintenance hangars, and commercial real estate around the airport.
Record passenger growth
This summer brought historic passenger numbers, driven by expanded flight options and lower ticket prices. Records were broken in both June and July, with July alone seeing 384,000 passengers — a 19 percent rise year-on-year. Tuvike said travel demand has remained strong since the pandemic, boosted by rising local wealth and cheaper fares. The airport expects roughly 3.7–3.8 million passengers this year, with a longer-term goal of reaching five million annually by 2030.
Tuvike noted that passenger demand, not low airport fees, is what ultimately determines whether airlines launch new routes, since the region the airport can realistically serve totals only around one million potential passengers.
AirBaltic concerns and infrastructure strain
Discussing challenges facing the regional aviation market, Tuvike addressed the financial troubles of Latvian carrier airBaltic. While airBaltic remains an important home carrier for Estonia, Tuvike does not believe the Estonian government should take a stake in the company, arguing that running a profitable airline in such a small market is inherently difficult. He added that even if airBaltic were to withdraw, Estonia's air connections would not collapse, since the airport has diversified its carrier base, including expanding cooperation with low-cost airline Wizz Air.
The rapid rise in passengers has strained existing infrastructure, with baggage waiting times sometimes reaching an hour. Construction is set to begin next year on a project to expand the terminal by 50 percent by the first half of 2029, focusing on enlarging baggage claim and border control areas. Warsaw currently ranks as Tallinn's top destination, followed by Frankfurt, Riga and Helsinki, while Tuvike named London Heathrow and Madrid as future targets for direct flights.
