Prime Minister Andris Kulbergs stated that the state should no longer remain the sole source of financial support for airBaltic. According to him, a decision on the future of the airline must be made in the coming months.
The new government intends to determine the further development strategy of airBaltic and its funding sources in the near future.
Prime Minister Andris Kulbergs stated that the national airline remains a strategically important asset for Latvia; however, its support cannot be sustained indefinitely solely through public funds. According to the head of government, private investors must also participate in the company's financing.
For this purpose, Kulbergs has already requested a business plan and proposals for the further development of the enterprise from the management of airBaltic.
"A decision must be made this summer — either-or. There are no other options," emphasized the Prime Minister.
The future of the airline has once again come to the forefront following statements by Minister of Transport Richard Kozlovskis that airBaltic may require additional state support this summer. At the same time, the minister noted that, from an operational standpoint, the company is functioning stably. In particular, the punctuality of flights has improved. However, the financial situation of the carrier remains challenging.
In the first quarter of this year, the losses of the airBaltic group exceeded 70 million euros, which is more than double the figure for the same period last year. Despite an increase in revenue, results continue to be affected by rising costs, currency fluctuations, and a reduction in certain types of commercial support.
For passengers, the situation does not yet mean any immediate changes. Flights are operating as usual, and the company's management emphasizes the stability of operational activities.
However, the issue of financing is becoming increasingly relevant.
According to airBaltic's annual report, even with expected improvements in commercial performance, the airline may face a cash shortfall in the coming years. According to management estimates, additional funding of between 100 and 150 million euros will be required to get through the winter season of 2026/2027.
Previously, an initial public offering (IPO) was considered one of the possible sources of capital. However, after the deterioration of financial results and changes in the market situation, the company temporarily abandoned these plans.
Today, the largest shareholder of airBaltic remains the Latvian state, which owns more than 88% of the shares. The German airline Lufthansa owns 10% of the capital.
Thus, the new government faces a difficult choice: to determine how to ensure the financial stability of the national airline and what role the state and private investors should play in this.
Judging by the Prime Minister's statements, a final position on this issue should emerge in the coming months.
