The state airline of Latvia, airBaltic, in addition to an initial public offering (IPO), needs to consider other instruments for attracting private capital, said Minister of Transport Aitis Shvinka to the LETA agency.
Shvinka stated that on Tuesday, the Cabinet of Ministers met in a closed session with the new CEO of airBaltic, Erno Hilden, who informed the government about his experience, vision, as well as tasks and plans for the near future.
At the same time, he admitted that airBaltic will require private capital in 2026, so it was once again instructed to assess capital market opportunities and prepare an appropriate proposal.
In response to a question about whether the need for additional state funding was discussed at the government meeting, the minister said that such issues were not considered. "This is a new situation, as the company is not coming at the last moment when something is urgently needed, but is coming with its vision," Shvinka said mysteriously, without explaining what this vision is.
At the same time, the government discussed that the base of airBaltic should remain in Riga, that the state needs to retain at least 25% plus one share in the capital of airBaltic, and also to increase flights from Riga.
Hilden began his work as the CEO of airBaltic on December 1, 2025.
In 2024, the airBaltic group operated at a loss of 118.159 million euros.
The Latvian government decided a year and a half ago to sell 75% of the shares of airBaltic. So far, only 10% has been sold – they were purchased cheaply by the German airline Lufthansa.
