Latvia in Talks with Three Investors for airBaltic Stake

Latvia is in active negotiations with three potential investors regarding a stake in the national airline airBaltic, according to Prime Minister Andris Kulbergs. He expressed optimism about reaching an agreement with one of the parties but declined to provide further details on their identities.

Kulbergs reiterated his stance that the state's ownership in airBaltic should be reduced to a minimum. He believes the government's role in managing the airline business should be limited.

AirBaltic has been working to stabilize its financial situation by revising its business plan and seeking new investors and funding. The airline reported a turnover of 779.344 million euros last year, a 4.2% increase compared to the previous year. However, the group incurred a loss of 44.337 million euros, which was 2.7 times less than the prior year. Passenger numbers saw a slight increase of 1% to 5.2 million in the past year.

Previously, Lufthansa became a shareholder in airBaltic last summer. Currently, the Latvian state holds 88.37% of the shares, Lufthansa has 10%, and financial investor Lars T. Thuesen's company Aircraft Leasing 1 holds 1.62%. The airline's share capital stands at 41.819 million euros. The airline had suspended its potential initial public offering (IPO) due to market conditions and financial results, anticipating a need for an additional 100 to 150 million euros in funding for the 2026/2027 winter season.