Three Investors in Talks to Invest in airBaltic; IPO Shelved

An unnamed politician revealed that negotiations regarding investments in airBaltic are underway with three different investors. He provided no further details about the identities of these partners but expressed confidence that the state's stake in the airline should be reduced to a minimum, as the state should not be actively involved in this business.

airBaltic has been seeking ways to stabilize its financial situation by revising its business plan and attracting investors and new funding. According to the company's annual report, the group's turnover in 2025 increased by 4.2% to €779.344 million. Losses in the same period fell 2.7 times to €44.337 million. The airline carried 5.2 million passengers, up 1% from 2024.

Current shareholder structure: the Latvian state holds 88.37% of shares, Germany's national airline Lufthansa – 10%, Danish entrepreneur Lars Thuesen's company Aircraft Leasing 1 – 1.62%, and others – 0.01%. Lufthansa's acquisition took place in summer 2024, and the deal stipulates that after a potential initial public offering (IPO), Lufthansa will retain at least 5% of the capital. The Latvian government decided in August 2024 that after the IPO, the state must keep at least 25% plus one share. Both the state and Lufthansa made a co-investment of €14 million prior to the 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. Management forecasts a negative free cash flow in 2026 and expects that an additional cash injection of €100–150 million will be needed for the 2026/2027 winter season.