Latvian Government Removes airBaltic CEO Over Financial Losses

The Latvian government has dismissed Martin Gauss, CEO of airBaltic, due to the airline’s poor financial performance. The decision was made during a regular shareholders’ meeting on April 7, 2025. Gauss had led the airline since 2011.

In a statement, supervisory board chairman Andrejs Martinovs said the company will continue implementing its strategic goals, including a potential IPO. “We maintain full confidence in the management board and professional team,” he said. Pauls Cālītis, current chief operations officer, has been appointed interim CEO.

Gauss confirmed to Reuters that he had lost the government’s trust, criticizing the handling of his departure as “nasty.” Latvian Transport Minister Atis Švinka confirmed the decision was influenced by airBaltic’s weak financials.

The leadership change comes shortly after the airline reported a 2024 net loss of EUR118.2 million (USD130 million), a significant downturn from the EUR33.7 million (USD37 million) profit in 2023. This occurred despite a rise in revenue from EUR668 million (USD738 million) to EUR747.6 million (USD826 million).

airBaltic has delayed its IPO multiple times and is considering a listing on the London Stock Exchange, with a potential dual listing in Riga. Lufthansa Group recently invested EUR14 million (USD15.5 million) in a convertible share, securing a 10% stake.

The airline currently operates 50 Airbus A220-300s, with 40 more on order, according to ch-aviation. It is also wet-leasing aircraft to carriers including Swiss, Lufthansa, Brussels Airlines, Austrian Airlines, and Air Dolomiti. The Latvian state holds a 97.97% stake in airBaltic.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com