Estonia declines airBaltic equity participation
Estonia Passes on airBaltic Stake, Offers Airport Fee Relief
In a surprising turn of events, Estonia has decided not to acquire a stake in airBaltic, the Latvian airline that accounts for 30% of passenger traffic at Tallinn Airport. The decision comes after the Latvian Ministry of Transport offered to sell up to 10% of airBaltic shares for €14 million.
Despite the opportunity, the reasons behind Estonia's decision remain unclear. The airline's financial situation, which was problematic as recently as last year, has shown significant improvement. In Q2 2025, airBaltic reported a net profit of €27.6 million, a stark contrast to the loss it incurred in the same period the previous year. The company's revenue also grew by 4.8% year-over-year in Q2, reaching €216.9 million.
Despite these positive developments, airBaltic continues to face challenges such as engine availability and rising costs. However, the airline is demonstrating resilience, with a stable performance and ongoing growth. airBaltic is also expanding its fleet and expects further growth in revenue and capacity in 2026, including plans to raise additional equity.
In an effort to develop cooperation, Estonia is offering airBaltic no increase in airport charges until 2030. This offer is exclusive to airBaltic, and it's unclear if similar terms have been extended to other airlines.
Meanwhile, Germany's competition watchdog, the Federal Cartel Office, has allowed Lufthansa to acquire a 10% stake in airBaltic. The financial situation of airBaltic remains a concern, as previously stated, and the change of management at the airline is still an ongoing issue.
It's worth noting that Lithuania has not yet decided whether to buy shares in airBaltic. As of now, the decision to acquire airBaltic shares was not made by Estonia.
airBaltic's financial recovery and ongoing strategic developments, including its cooperation with the Lufthansa Group and fleet expansion, have been the focus of recent announcements and reports. The airline is poised for continued growth, with plans to expand its fleet and increase revenue and capacity in 2026.
For further insight into Estonia's decision, further investigation beyond the given sources would be required.
- The decision not to acquire a stake in airBaltic by Estonia might be related to their plans in the finance, business, and aerospace sectors, as they are offering airport fee relief instead.
- Despite airBaltic's improved financials, as seen in a Q2 2025 net profit of €27.6 million and a year-over-year revenue growth of 4.8%, Estonia has opted to focus on other areas such as infrastructure and industry.
- Media outlets are yet to provide comprehensive details behind Estonia's decision, leaving the reasons for their move uncertain.
- The Latvian Ministry of Transport's offer to sell up to 10% of airBaltic shares for €14 million could have been a potential opportunity for Estonia in the media, business, and finance industries.
