Lufthansa Group has signed an agreement to invest EUR14 million euros (USD14.5 million) in airBaltic (BT, Riga), securing a minority stake in the carrier and a seat on its supervisory board.
In exchange for its investment, the Lufthansa parent will receive a convertible share granting a 10% stake, issued at a subscription price of the above sum and converted into ordinary shares once a planned airBaltic initial public offering (IPO) occurs.
Following the IPO, the final stake size will depend on market pricing, with the group’s shareholding in the Baltic carrier amounting to no less than 5%, both companies outlined in a statement. The transaction is expected to close in the second quarter of 2025, subject to antitrust approval.
airBaltic told ch-aviation last year that it was planning a EUR300 million euro (USD312 million) fund-raise through an IPO which would finance its future growth amid a challenging financial position.
The deal provides airBaltic with additional funding to support its growth plans, including the expansion of wet-lease agreements. Last year, the Riga-based airline signed a three-year ACMI agreement with Lufthansa Group for up to twenty-one of its A220-300s during summer and up to five in winter.
“Additionally, further development of wet-lease services in line with our customers’ expectations is planned,” Lufthansa said.
Also in January 2025, a similar wet-lease agreement was announced for up to five airBaltic A220-300s with Uruguayan start-up Sociedad Uruguaya de Aviación (Montevideo Carrasco).
airBaltic’s current fleet consists of forty-nine A220-300s. The airline is majority-owned by the Latvian state, which holds a 97.97% stake, with the remaining 2.03% owned by a private shareholder.
