airBaltic narrows losses in 2025 but faces funding and fuel hurdles
Latvian airline airBaltic is pushing for profitability under new leadership, despite ongoing financial challenges. The carrier reported a narrower annual loss in 2025, but rising fuel costs and funding needs remain key concerns. Meanwhile, expansion plans from Tallinn continue as the airline strengthens its regional presence.
In 2025, airBaltic reduced its annual loss to €44 million, a significant improvement from the €118 million deficit in 2024. Revenues also inched up to €780 million, though the company still faces financial pressure. New CEO Erno Hilden has made profitability his top priority since taking charge.
The airline is now seeking extra funding from private investors to stabilise its finances. German carrier Lufthansa has already taken a 10% stake in airBaltic, signalling confidence in its future. However, talks about potential investments from Estonia and Lithuania have stalled, with no progress reported.
Rising costs are adding to the strain. Aviation fuel prices have doubled to US$1,520 per tonne, driven by surging oil markets. airBaltic has yet to decide whether this increase will lead to higher airfares for passengers.
On the operational side, Tallinn Airport remains a central hub for the airline. Four new routes from the Estonian capital are set to launch in 2026, bringing the total to 20 destinations served by four aircraft. A new summer route from Hamburg to Tallinn has also been confirmed for the 2026 schedule.
airBaltic's focus remains on cutting losses while expanding its network. The airline's financial recovery depends on securing new funding and managing fuel costs effectively. With Lufthansa's backing and planned route growth, the coming year will test its strategy for long-term stability.
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