First-quarter losses double but Latvian carrier highlights fleet availability and record revenues.
Latvian carrier Air Baltic is highlighting a number of positive developments which, it claims, support long-term viability as it explores options to strengthen its capital structure.
The airline’s first-quarter net loss more than doubled to €70 million ($82 million) even as revenues increased 12% to a record €149 million.
It attributes the poorer result to cost inflation and the impact of foreign exchange.
Air Baltic has obtained parliamentary approval for a €30 million loan to address liquidity issues.
Its medium-term strategy had centred on an initial public offering to raise capital, but market conditions and the company’s financial position have left the timing and feasibility of such a venture uncertain.
“As a result, activities related to the IPO process have been suspended,” the carrier states in its first-quarter update.
Air Baltic has engaged advisors to develop a new strategic plan and assess alternatives to ensure financial sustainability.
“The [company] is in active dialogue with its key stakeholders, including the [Latvian government] regarding the most appropriate path forward,” the carrier says.
“Several options are under consideration and management is committed to pursuing a solution that supports the continued operation of the airline and preserves value for all stakeholders.”
Air Baltic says that, despite financial pressures, its fleet availability has improved as Pratt & Whitney engine problems on its Airbus A220 fleet have subsided.
Passenger numbers reached their highest first-quarter level. The airline underlines better unit revenues and yield performance, as well as a “growing contribution” from wet-lease operations that support winter fleet utilisation.
Wet-lease accounted for €21.3 million in revenues in the quarter, about 14% of the total.
“From an operational perspective, the first quarter was stable for Air Baltic,” says chief executive Erno Hilden.
But the company also acknowledges its negative equity position, the short-term nature of the government loan, and other risk factors — among them the “extremely high” fuel prices, the possibility of further geopolitical instability, and the pace of economic recovery in core Baltic markets.
“Our focus for 2026 is on revenue quality, cost discipline, and making full use of our improved fleet availability,” Hilden says.
Latvia’s government holds nearly 88.4% of the airline, with Lufthansa Group owning a further 10%.
Air Baltic says the government, as principal shareholder, has “demonstrated continued support” for the company.
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