airBaltic IPO Delayed to 2026, May Seek Latvian State Support

airBaltic may postpone its long-anticipated initial public offering (IPO) to 2026, as the likelihood of a 2025 listing has “significantly decreased,” the airline revealed in its first-quarter 2025 report. The Latvian flag carrier plans to manage its budget carefully and may consider additional financial support from the state if market conditions deteriorate.

The report warned that rising fuel prices, worsening engine supply issues, or continued economic strain could impact both liquidity and overall financial performance. While the Latvian government remains the majority shareholder, Prime Minister Evika Siliņa has ruled out direct financial intervention, citing European Commission rules on state aid. She has approached Lithuania and Estonia for potential joint investment, but without success.

The airline continues to face operational challenges, with an average of 13 Airbus A220-300 aircraft grounded in Q1 2025 due to Pratt & Whitney PW1000 engine issues—a figure unchanged from Q4 2024. To offset the shortage, airBaltic wet-leased three aircraft (two A319-100s and one A320-200) from Carpatair, which will operate throughout the Summer 2025 season.

Currently, airBaltic operates 50 in-house A220-300s and expects delivery of 40 more. Despite ongoing engine issues, the airline does not plan to lease additional ACMI capacity this summer.

Meanwhile, airBaltic is expanding its ACMI-out services. In Q1 2025, it leased an average of 6.2 aircraft to Lufthansa Group carriers, up from 5.2 the previous year. The agreement allows for up to 19 A220s to be operated for Lufthansa, Swiss, Austrian, and Brussels Airlines. Lease revenue now accounts for 13% of total revenue, up from 10%.

Related News: https://airguide.info/category/air-travel-business/airline-finance/

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