The Latvian carrier airBaltic, who is in fact a major player in air transport in Latvia and also in Lithuania, is also the preferred whipping boy of Ryanair's CEO. Michael O’Leary regularly predicts that the airline will go bankrupt.
Certainly, airBaltic is going through a difficult period. A major player in Northern Europe with a passenger traffic of 5.2 million in 2025 and a fleet of 55 aircraft, it is experiencing a delicate financial situation. In French-speaking Europe, airBaltic connects Riga to Brussels, Geneva, Nice, and Paris CDG; the carrier also connects Tallinn and Vilnius to Brussels, Nice, and Paris.
For the full financial year 2025, airBaltic achieved record revenue of €779.3 million, up 4.2% on 2024. The airline nevertheless recorded an annual loss of €44.3 million.
In the first quarter of 2026, the company reported operating revenue of €149 million, up 12% year-on-year compared with the same period in the previous year. This growth was driven by an increase in passenger traffic as well as the expansion of aircraft leasing with crew (ACMI) activities. The latter account for 14.31% of revenue and are primarily carried out on behalf of the Lufthansa Group, which also holds a 10.1% stake in airBaltic.
Nevertheless, despite these advances, airBaltic recorded a net loss of €70.1 million for the quarter, significantly higher than the previous year. An unfavourable exchange rate against the dollar and the temporary suspension of routes to Dubai and Tel Aviv contributed to this deterioration.
AirBaltic was forced to turn to its main shareholder, the Latvian government, which holds an 88.1% stake in the company. Last April, the Latvian Parliament approved an emergency loan of €30 million to support the airline. The loan, granted without collateral, must be repaid in full, including interest, by 31 August 2026. AirBaltic has already repaid an initial instalment of €6.4 million in May.
Decision within the summer
The Latvian Prime Minister, Andris Kulbergs, has nevertheless warned on national television that the carrier can no longer rely solely on taxpayer financial support for its development. The Latvian government is thus preparing to make a decisive decision concerning the future of the national company airBaltic. While describing the company as a strategic national asset, he stressed that the government must define a clear direction before the end of the summer. A sustainable solution for airBaltic should involve combining private capital with support for the company.
Another element to replenish airBaltic's coffers would be to transfer some of its confirmed Airbus deliveries to other carriers, which are in need of new aircraft due to a global production shortage. These delivery slots could represent a particularly valuable asset.
Andris Kulbergs specified that he was currently reviewing the company's business plan and several future scenarios, after having requested a detailed report from government officials. He therefore promises a definitive decision on airBaltic's future in the course of the summer...
