Is the national airline a symbol of pride or a chronic loss-making project? A Latvian expert stated: airBaltic cannot be profitable, and society needs to honestly understand whether we are ready to pay for it.
It’s more than just business
In Latvia, an increasingly open discussion is brewing about the future of the national airline airBaltic. Historian, Doctor of Historical Sciences, and leading researcher at the Vidzeme University of Applied Sciences, Gatis Krūmiņš, stated on the program "Preses klubs" on TV24 that the current model of the company is not viable.
According to him, the key issue lies in the approach itself: "There needs to be a paradigm shift. We must honestly say — this project cannot be profitable, it cannot be a business." The expert noted that the economic and social activity in the region, including Riga, is insufficient to support a large-scale and quality airline network. At the same time, Krūmiņš emphasized that difficulties are not only faced in Latvia: "The problems are not just with our airline — they are encountered in much larger cities as well."
He believes that society needs to be directly informed about the real state of affairs: either the country is ready to finance the airline, or its existence should be reconsidered. The historian suggested viewing airBaltic as an element of national identity:
Do we need such ‘hockey’?
"It is part of our national self-esteem. Like the Olympics, football, or basketball — we participate, it costs money, but it’s about prestige."
He added that having a national airline favorably distinguishes Latvia among its neighbors: "Lithuania and Estonia do not have this. They praise us: you have an airline, you fly, people come to you." However, the key question, according to the expert, remains open: "Are we willing to pay for it?"
Krūmiņš also dismissed popular conspiracy theories: "We need to stop saying that someone wants to cause harm on purpose. It’s just that this business cannot be made profitable." He recalled the strategy of the former head of the company, Martin Gauss:
"The idea was good — to buy many planes, actively fly all over the world, partially subsidizing to make Riga an aviation hub."
However, external factors destroyed these plans: "The war in Ukraine started, then other crises — and it became clear: it won’t work."
In the end, the expert formulated a harsh choice: "If we want to operate 'at zero' and are not ready to pay — then this venture needs to be closed."
It was previously reported that the losses of the Latvian national airline airBaltic last year amounted to €44.337 million, which is 2.7 times less than in 2024.
airBaltic does not plan to cancel flights due to rising fuel prices
The Latvian national airline currently does not plan to cancel flights due to rising fuel prices and continues to prepare for the summer flight season, which will begin at the end of March, said airBaltic's head of public and political relations, Augusts Zilberts.
He explained that the airline constantly assesses the economic feasibility of routes; however, no changes are planned in the short term.
Commenting on possible measures to compensate for the sharp rise in fuel prices, Zilberts noted that the company is closely monitoring the situation and considering various development scenarios. He emphasized that due to the high volatility of the market, it is still too early to provide accurate assessments of additional long-term fuel costs.
At the same time, he reported that there is currently no significant increase in air ticket prices in the market as a whole. Their cost is determined by demand, competition, and the overall market situation. airBaltic operates in a competitive environment where prices cannot be set unilaterally, so the company continues to monitor market developments and adjust its pricing policy as necessary.
Commenting on the decline in airBaltic bond prices, Zilberts noted that the company views fluctuations in the short-term bond market as part of a broader market dynamic.
According to him, the company’s approach is based on long-term development goals, fulfilling the business plan, and strengthening the capital structure, rather than reacting to individual market fluctuations.
The price of airBaltic bonds continued to fall on Friday amid investor concerns about how the airline will cover rising fuel costs.
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