The Ministry of Transport plans to announce the results of the competition for three positions on the airBaltic board in June. The selection is taking place at a time when the airline is preparing to seek additional funding and has postponed its plans for an IPO.
The results of the competition for three positions on the board of the national airline airBaltic will be announced in June. According to the Ministry of Transport, a total of 31 applications have been submitted for the competition.
Initially, 26 candidates expressed interest in the vacancies, but the deadline for submitting documents was extended. The ministry explained this by the desire to ensure higher competition among candidates with specific profiles.
Among the participants in the competition is the current interim chairman of the airBaltic board, Andrey Martynov, who confirmed his participation to the LETA agency.
The future board will have to work during a challenging period for the airline. Despite the growth in passenger traffic and revenue, airBaltic continues to face financial difficulties. In the first quarter of this year, the group's losses reached 70 million euros, more than double the figure for the same period last year. At the same time, turnover increased by 12.3% to nearly 149 million euros.
The company attributes the deterioration in financial results to currency fluctuations, rising financing costs, reduced commercial support, and increased expenses in several areas.
What is important to know: the new board composition will be determined at a time when airBaltic is effectively revising its plans for raising capital. The company has already ruled out considering an IPO as a source of funding in 2026.
According to the annual report, the airline's management expects that additional funding of between 100 and 150 million euros will be needed to ensure operations in the winter season of 2026/2027. Meanwhile, operational indicators remain relatively stable. Last year, airBaltic transported 5.2 million passengers, which is 1% more than the previous year. The company's revenue rose to 779 million euros, and annual losses decreased compared to the previous year.
Currently, the largest shareholder remains the Latvian state, which owns 88.37% of the airline's shares. The second-largest shareholder is the German airline Lufthansa with a 10% stake.
At least two of the three new board members must meet the criteria for independent board members. The monthly remuneration for the chairman of the board is set at up to 3021 euros before taxes, and for board members, it is up to 2718 euros.
The results of the competition will be known in the coming weeks. The new board will participate in decision-making related to both the further development of the company and the search for additional capital for its financing.
