airBaltic Delays IPO to First Half of 2025 Amid Market Concerns
Latvia’s airBaltic has postponed its long-anticipated dual-listing IPO to the first half of 2025, citing unfavorable market conditions. CEO Martin Gauss announced the updated timeline following the airline’s latest financial report, emphasizing that airBaltic is operationally ready for the offering with a modern fleet, strong management, and growth potential.
Despite this readiness, airBaltic reported a €48.5 million ($51.3 million) pre-tax loss for the first nine months of 2024, compared to a €9.1 million ($9.6 million) profit in the same period last year. Negative equity of €97 million ($102.6 million) and liabilities exceeding assets by €161 million ($170.4 million) underscore financial challenges. The airline attributes these losses to Pratt & Whitney engine issues, accelerated depreciation costs, currency depreciation, and bond redemption expenses.
In October, airBaltic reissued its May 2024 bond, increasing the total issue size to €380 million ($411.7 million) at a 10.1% yield. The airline expects to manage liquidity needs until an equity financing event in 2025 or 2026 through revenue growth, operating cash flow, and capital expenditure adjustments.
airBaltic’s revenue grew by 13% year-over-year to €575.3 million ($609 million), driven by higher-margin ACMI operations and increased passenger numbers. Wet-leasing contributed 22% of third-quarter revenues, showcasing the airline’s strategic focus.
Speculation continues about Lufthansa Group’s potential 10% stake in airBaltic, with discussions reportedly underway. As the IPO timeline shifts, airBaltic remains focused on stabilizing its financial position and leveraging growth opportunities.
Related News: https://airguide.info/?s=airBaltic
Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com