airBaltic may request new funds from the state: what is happening with the largest airline in the Baltics 0 8

The question of airBaltic's financial situation has once again come to the forefront of government attention. Minister of Transport Rihards Kozlovskis stated that the airline may require additional state support this summer.

According to him, the management and state structures are currently analyzing the carrier's business plan and are awaiting its approval by the company's board.

"After that, we will see. Funding may be needed," the minister noted.

At the same time, Kozlovskis emphasized that from the perspective of daily operations, the airline is functioning stably. In his assessment, punctuality indicators have also improved compared to last year.

However, the main issue remains finances.

In the first quarter of this year, the losses of the airBaltic group reached 70 million euros, which is 2.4 times more than in the same period last year. Despite this, revenue continued to grow and exceeded 149 million euros.

The company itself explains the deterioration in financial results by fluctuations in exchange rates, a reduction in commercial support, and ongoing increases in expenses.

What is important to understand is that this is not about saving the company from an immediate crisis, but about finding funds to ensure continued operations in the context of a persistent negative cash flow.

In April, the Saeima already approved the provision of a short-term state loan to airBaltic in the amount of 30 million euros. Last week, the airline repaid the first part of the loan — 6.4 million euros. According to the terms of the agreement, the entire loan must be repaid by the end of August.

Nevertheless, the company's annual report contains a warning that in the winter of 2026–2027, the carrier may need additional funding ranging from 100 to 150 million euros.

The situation is further complicated by the fact that airBaltic has effectively abandoned plans to go public in 2026. Initially, the IPO was considered one of the main ways to attract new capital, but after the deterioration of market conditions and financial results, these plans have been put on hold.

At the same time, the government's interest in maintaining the airline remains high. Kozlovskis stated that his task as a minister is to do everything possible to ensure that airBaltic continues to operate. According to him, the speed of decision-making is of particular importance, as creditors, partners, and investors are closely monitoring the situation.

Today, airBaltic remains the largest airline in the Baltics. Last year, it transported over 5.2 million passengers and continues to operate flights across a wide network of routes from Riga and other cities in the region.

In the coming months, it will become clear whether the company can stabilize its financial situation independently or if it will again require state support.