It is necessary to think creatively: the minister spoke about where to find money for airBaltic 0 9

He noted that an initial public offering (IPO) is not the only way to attract capital, and the airline's management has been given the broadest mandate to seek opportunities to raise funds through various financial instruments. Thus, the airline's task for 2026 is not only to reduce expenses but also to attract capital.

At the same time, Švinka noted that the ongoing war in the Middle East does not make the situation easier.

"Therefore, a clear vision of how we can help the company raise capital in one way or another should emerge very soon," the minister said.

He also pointed out that the European Union (EU) does not allow the state to directly support airlines. "We need to think creatively about how we can strengthen airBaltic, ensure its operations, because the company's contribution to the economy and society is significant," Švinka said.

He also emphasized that the IPO remains a goal.

"Sooner or later, airBaltic must have private capital; it must become a public joint-stock company listed on the stock exchange, and this goal should never be removed. This is a task we must work towards. At the same time, the balance and financial indicators are challenging, and we need to see what is realistic," Švinka said, adding that the immediate task is to find a way to organize the airline's finances in another way.

"The IPO has not disappeared as a goal," Švinka emphasized.

As previously reported, airBaltic, considering the financial results of 2025 and the market situation, has suspended a possible IPO and is currently not viewing it as a potential source of capital in 2026.

The annual report of airBaltic states that despite the expected improvement in operational and commercial activities, the airline will operate with a negative free cash flow in 2026, and according to current forecasts, the management will need an additional injection of funds ranging from 100 to 150 million euros to finance operations in the winter season of 2026/2027.

Until new financing is obtained — either capital or through other means — the airline plans to continue operating in cash-saving mode in 2026. At the same time, with the support of the largest shareholder of airBaltic — the government of Latvia — the company is seeking opportunities to attract new capital from alternative sources, including through an M&A deal — merger or acquisition.

To support this process, the group plans to engage and has already begun the process of selecting an international financial consulting firm with relevant experience in the aviation industry. The task of the financial consultant will be to identify and evaluate potential investors and structure the appropriate capital-raising deal.

At the same time, airBaltic has engaged a strategic industry consulting firm to conduct a comprehensive review of its commercial strategy and operations to develop and revise a business plan that will accelerate the return to profitability.

However, if new external financing is not available in 2026, the management of airBaltic will turn to current shareholders for additional financing. The report states that the government of Latvia, as the largest shareholder of airBaltic, has historically demonstrated support for the airline, but additional investments are only possible if EU state aid rules are followed.

If additional financing is not available from either new investors or shareholders, management will begin negotiations with key suppliers, financial institutions, and lessors to extend payment terms or defer them to maintain a sufficient level of liquidity for the airline's operations in the fourth quarter of 2026 and the first quarter of 2027, thereby ensuring the possibility of seeking additional financing in 2027.

It was also reported that the losses of the airBaltic group last year amounted to 44.337 million euros, which is 2.7 times less than in 2024. Meanwhile, the turnover of the airBaltic group last year increased by 4.2% compared to 2024, amounting to 779.344 million euros.

In 2025, the airline transported a total of 5.2 million passengers in its route network, which is 1% more than in 2024.

The total number of flights performed, including full aircraft charter services (ACMI), last year amounted to 78,400, which is a 7% increase. Of these, 48,300 flights were performed in the airline's route network — 3% more than in 2024, while 30,100 were ACMI flights — 15% more.

At the end of August last year, the national airline of Germany, Lufthansa, became a shareholder of airBaltic. Currently, the Latvian state owns 88.37% of the shares of airBaltic, Lufthansa owns 10%, a financial investor — the company Aircraft Leasing 1 owned by Danish entrepreneur Lars Tuessen — owns 1.62%, and 0.01% is owned by others. The company's authorized capital amounts to 41.819 million euros.

After the IPO, the size of Lufthansa's stake will be determined by the potential market price of the IPO. The deal also stipulates that after a potential IPO, Lufthansa will own at least 5% of the capital of airBaltic.

On August 30, 2024, the government of Latvia agreed that after the IPO, the state must retain at least 25% plus one share in the capital of airBaltic. On August 19, 2025, the government decided that Latvia, like German Lufthansa, would co-invest 14 million euros in airBaltic before the potential IPO.