en.Wedoany.com Reported - Latvian Transport Minister Atis Svinka recently stated that a new draft business plan for Air Baltic has been submitted to the Supervisory Board for review. The plan aims to stabilize finances and promote long-term business development, with an external advisor having been hired this spring to formulate the strategy.

Air Baltic faces high cost pressures, paying approximately €56.2 million in annual interest on the €380 million bonds issued in 2024. The airline is currently preparing a capital increase, with funds to be raised by the Latvian Ministry of Finance from the state budget. Lufthansa, which holds a 10% stake in Air Baltic, has clearly stated it will not participate in the capital increase.

Lufthansa CEO Carsten Spohr stated in Frankfurt in May that Air Baltic remains an important wet lease partner for Lufthansa, but the German carrier is unwilling to invest further, believing the Latvian government should take responsibility. Lufthansa previously invested €14 million for its stake, aimed at deepening wet lease cooperation, with Air Baltic providing aircraft and crew.

Air Baltic's financial situation continues to deteriorate. The seasonal loss in the first quarter of 2026 widened from €29.3 million in the first quarter of 2025 to €70.1 million, while revenue for the same period was €149.1 million. The impact of the Iran war on jet fuel prices could further exacerbate the difficulties—Air Baltic has only locked in 10% of its 2026 fuel needs through price contracts.

According to media reports, Air Baltic needs to secure up to €150 million in new funding by September at the latest. Neither Air Baltic nor the Latvian government has disclosed specific financial needs, nor have they denied this figure. Details of the new business plan have not been made public, but company executives have hinted at strengthening its own network flights in the future and reducing the proportion of wet lease operations.

This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com