On August 30 this year, the Cabinet of Ministers of the Republic of Latvia decided on matters concerning preparations for the initial public offering (IPO) of Latvia’s national airline airBaltic. In the course of this process, airBaltic will simplify its existing share structure to make it more attractive to investors.
airBaltic President and CEO Martin Gauss: “After the successful development of airBaltic in the first half of 2024 we are now together with banks and international advisors in an intense preparation for listing airBaltic at the stock exchange.”
On its way to the IPO, the airline has decided to consolidate four existing share classes into one. This is a common international practice to make the share structure even more transparent and attractive to the market. Furthermore, the consolidation of share capital will improve the capital structure of the company itself. The consolidation of shares also reduces their nominal value. The purpose of these actions is to strengthen the airline’s equity by reducing share capital and using it to offset accumulated losses from previous years. This is a technical accounting process that does not change the value of the airline or the value of the state’s shareholding.
airBaltic President and CEO Martins Gauss: “Our priority at the moment is to ensure that airBaltic is ready for the next stages of its development. The growth of the airline will bring high added value to the Latvian state, society and the economy as a whole. Simplifying the share structure is one of the homework tasks we need to do now to help the company implement the IPO. Notably, the purpose of the IPO is to increase the company's capital and attract new investors, which will increase the company's value. It is planned that the potential IPO will enable not only financial investors but also private retail investors to become shareholders of airBaltic.”
“airBaltic plays an important role in the region's GDP growth and connectivity. At the same time, the airline facilitates investment flows, supports services, creates jobs and generates tax revenues that have a significant impact on the much broader economic picture,” added Gauss.
The Cabinet also discussed the conditions to be met for a successful IPO and consolidation of the share classes, including maintaining connectivity (destinations), the number of flights and RIX Riga Airport as airBaltic's main base.
airBaltic operates more than 130 routes from Riga, Tallinn, Vilnius, Tampere and seasonally from Gran Canaria, offering convenient connections across the airline's route network in Europe, the Middle East, North Africa and the Caucasus region. The full airBaltic flight schedule and tickets are available on the company's website www.airbaltic.com.
About airBaltic:
airBaltic (Air Baltic Corporation AS) is the leading airline in the Baltics and one of Europe’s fastest growing carriers. As a hybrid airline, it leverages the upsides of both traditional network and low-cost carriers. Through a network of more than 130 routes from Riga, Tallinn, Vilnius, Tampere and, seasonally, Gran Canaria, airBaltic connects the Baltics with over 70 destinations across Europe, the Middle East, North Africa, and the Caucasus.
Founded in 1995, today airBaltic operates one of Europe’s youngest fleets, consisting of 48 Airbus A220-300 aircraft, and employs over 2 600 professionals.
The company is majority-owned by the Latvian state, which holds a 97.97% stake, with the remaining 2.03% owned by private shareholders.
airBaltic's commitment to excellence is recognized by numerous prestigious awards including the Best Airline in its region by Skytrax for three consecutive years. In 2022, the International Air Transport Association (IATA) recognized airBaltic with the Diversity and Inclusion Team Award, and in 2023, the company received the APEX Passenger Choice Award for Best Cabin Service in Europe. In 2024, the airline was awarded the PROS AI Innovator Award for leveraging AI to drive transformative outcomes and optimize operations.
For further information, please contact:
airBaltic Corporate Communication Unit
Air Baltic Corporation AS
E-mail: pr@airbaltic.com