airBaltic (BT, Riga) is expected to launch its initial public offering (IPO) in the second quarter of 2025 and has selected the London Stock Exchange, unnamed sources told the news agency Bloomberg. The company is also considering a dual listing, with Riga being the likely candidate.
The airline is hoping to raise EUR300 million euros (USD327 million) via the IPO. The government of Latvia intends to keep a minority stake after the listing, maintaining 25% ownership plus one share. The state currently holds a 97.97% stake. Lufthansa Group, which recently agreed to invest EUR14 million euros (USD15 million) for a convertible share granting a 10% stake, will retain at least a 5% stake following the IPO, although the final shareholding will depend on market pricing.
The IPO news came as airBaltic posted a net loss of EUR118.2 million (USD129 million), in contrast to the profit of EUR33.7 million (USD36.7 million) recorded in 2023. This is despite its revenue rising from EUR668 million (USD728 million) to EUR747.6 million (USD815 million) year on year. airBaltic carried 5.1 million passengers in its network in 2024, 13% more than the year before.
It blamed increased competition, the consequences of the war in Ukraine, and issues with Pratt & Whitney engines as the biggest obstacles it faced in 2024. The airline expects the engine issues to last throughout 2025 and 2026. Accelerated depreciation of its engines caused a negative financial impact in 2024 of EUR40.5 million (USD44 million), with the negative impact until 2028 expected to be EUR80 million (USD87 million).
According to the ch-aviation fleets module, airBaltic operates fifty A220-300s, thirteen of them currently inactive, with forty more aircraft of the type on order.
