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airBaltic Collapse Would Be 'Tragedy' for Lithuania, Aviation Head Warns
🇱🇹 Lithuania /Economy & Trade

airBaltic Collapse Would Be 'Tragedy' for Lithuania, Aviation Head Warns

From Delfi · () Lithuanian

Translated from Lithuanian, summarized and contextualized by DistantNews.

At a glance

News Named sources Ongoing story
  • The CEO of the Lithuanian Aviation Association warns that a collapse of airBaltic would be a "tragedy" for Lithuania.
  • He suggests that if airBaltic falters, other airlines, such as Poland's LOT, could expand into the Baltic market.
  • The airline is facing financial difficulties, requiring a potential capital injection of 100-150 million euros for its winter operations.

The potential collapse of the national airline airBaltic would be a "tragedy" for Lithuania, according to the head of the Lithuanian Aviation Association (LVK), A. Romanovskis. He emphasized that air travel is crucial infrastructure, as vital as electricity, for businesses and daily life.

It would be a tragedy. A tragedy would be if flights were reduced.

— A. RomanovskisCommenting on the difficult financial situation of airBaltic.

Romanovskis expressed concern that a significant reduction in flights could devastate the business sector. However, he also noted that the market is competitive. If airBaltic were to cease operations, other carriers, potentially Poland's LOT, might step in to serve the Baltic region, viewing it as a key home market.

The airline is currently navigating significant financial challenges. Its annual report indicates a need for an additional capital injection of 100 to 150 million euros to finance its operations this winter. Despite anticipating improved performance, airBaltic expects negative free cash flow in 2026.

I still believe that this is a sufficiently competitive market and, for example, if airBaltic can no longer operate, other airlines, for example, the Polish airline (LOT – ELTA), might enter this region as stronger ones, as more willing to see the Baltic countries as their home market.

— A. RomanovskisSuggesting potential market responses if airBaltic fails.

Latvian Prime Minister Andris Kulbergis has stated that airBaltic's insolvency would be the worst-case scenario for Latvia. He assured that the government would do everything possible to keep the company afloat, though he stressed the necessity of private investment alongside potential state support.

Air travel is as important as electricity for our entire lives. Connectivity is essential for business. If the number of flights suddenly halved, it would be a tragedy.

— A. RomanovskisHighlighting the critical importance of air connectivity.

AirBaltic reported a net loss of 44.337 million euros last year, a significant improvement from 2024, while its turnover increased compared to the previous year.

I would not want to spread panic now, but the company, despite its financial challenges, is a very important financial and transport element.

— A. RomanovskisDescribing airBaltic's significance.
DistantNews Editorial

Originally published by Delfi in Lithuanian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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