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airBaltic's Initial Public Offering (IPO) could potentially be delayed until next year.

In the event of unfavorable second-half developments, particularly fuel price increases, Latvia's national carrier airBaltic may need to solicit additional funding from its shareholders.

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airBaltic's initial public offering (IPO) may be delayed until next year.
airBaltic's initial public offering (IPO) may be delayed until next year.

airBaltic's Initial Public Offering (IPO) could potentially be delayed until next year.

airBaltic, the Latvian airline, has announced that it will delay its Initial Public Offering (IPO) from 2025 to early 2026. The airline is focusing on profitability and strengthening its financial position before going public.

The decision to postpone the IPO comes as the airline is in the process of selecting a new CEO and waiting for favourable market conditions. According to Pauls Calitis, acting CEO of airBaltic, the IPO is part of airBaltic's core strategy.

Financially, airBaltic has faced challenges in recent years, including losses and government support during the COVID-19 pandemic. Despite these pressures, the airline operates a modern fleet of Airbus A220 aircraft and serves over 100 routes in Europe and beyond, maintaining a key regional connectivity role.

The Latvian government remains the major shareholder, with private investors and Lufthansa holding minority stakes. Estonia continues to support airBaltic operationally, e.g., by maintaining favourable airport fees until 2030 despite not acquiring shares. Lithuania's decision regarding its stake in airBaltic is still pending.

In terms of its financial status, airBaltic has ensured that the total amount of cash reserves and restricted cash is at least EUR 25 million. This restricted cash is a coupon payment on bonds. The airline's 2025 budget was drawn up in a cost-cutting mode, and it may need to seek additional funds from shareholders in the future to expand and finance its fleet.

The management of airBaltic plans to operate in a cash preservation mode to ensure liquidity until the possible IPO window in 2026. The potential IPO has been postponed until a new CEO is appointed and market conditions stabilize.

airBaltic's strategic focus is on abandoning foreign expansion and developing the Riga Airport, with a focus on regional connectivity. The airline is majority-owned by Latvia, with Lufthansa holding a 10% stake, but Estonia declined to buy shares citing airBaltic’s financial situation.

In summary, airBaltic is currently preparing for its IPO in early 2026, having postponed an earlier planned IPO from 2025. The airline is focusing on profitability and strengthening its financial position before going public. The potential IPO will introduce private capital, with the airline stabilizing financially and strategically prior to that event.

  1. The European Union's media outlets may report that airBaltic is seeking to increase its financial stability before its Initial Public Offering (IPO) in early 2026, as the airline focuses on profitability and strengthening its financial position.
  2. airBaltic, a significant player in the transport sector, plans to use the funds raised from its IPO to expand and finance its fleet, with a potential need for additional funds in the future.
  3. The finance sector might be interested to invest in the airline, considering its strategic focus on developing the Riga Airport, enhancing regional connectivity, and its plans to operate in a cash preservation mode until the IPO, which is expected to introduce private capital into the company.

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