Loss-making airBaltic is afraid to sell its shares on the stock exchange – they may not sell. So where will they get 100 million euros?

Photo: LETA

The Latvian national airline airBaltic, considering the huge losses of 2025, has suspended its initial public offering (IPO) and is currently not considering it as a potential source of capital in 2026, according to the company's annual report.

The report intricately notes that the airline will operate with a negative free cash flow in 2026. Clearly, this refers to new losses.

Given the current forecasts, the management expects that an additional injection of funds ranging from 100 to 150 million euros will be required to finance operations in the winter season of 2026/2027.

Until new financing is obtained, the airline plans to continue operating in cash-saving mode in 2026. At the same time, with the support of the Latvian government, the company is seeking funds elsewhere, including through M&A deals – mergers and acquisitions.

To this end, they want to attract an international financial consulting firm. The task of the financial consultant will be to search for and evaluate potential investors, as well as to structure the capital-raising deal.

At the same time, airBaltic has engaged a strategic industry consulting firm to conduct a comprehensive analysis of the company's commercial strategy and operations, in order to develop and update a business plan that will accelerate the return to profitability.

It is worth noting that airBaltic has been searching for a miracle investor almost since its inception. As for business plans, there have already been a multitude of them, including the well-publicized plan of the former head of the airline, Martin Gauss, who was dismissed last year.

Meanwhile, taxpayers need to prepare for further injections into the scandalous airline – if new external financing cannot be secured in 2026, the management of airBaltic will turn to the state. The report states that the Latvian government, as the largest shareholder, has historically demonstrated support for the airline.

If additional financing is not obtained from new investors or shareholders, the management will begin negotiations with key suppliers, financial institutions, and leasing companies to extend payment terms or defer them, in order to maintain a sufficient level of liquidity for the airline's operations in the fourth quarter of 2026 and the first quarter of 2027. This will allow for continued funding searches in 2027.

As reported by bb.lv, airBaltic's losses last year amounted to 44.3 million euros.