Lufthansa identified as strategic backer in airBaltic, Latvia's airline company
As of mid-2025, Lufthansa Group has acquired a 10% stake in airBaltic, following the purchase of convertible bonds worth €14 million in January [1][3][5]. This investment marks a significant step in strengthening the strategic partnership between the two companies.
Lufthansa Group's future stake in airBaltic after the planned Initial Public Offering (IPO) in 2025 is yet to be finalized. However, it's implied that Lufthansa might either maintain or possibly increase its shareholding through the IPO, although no official announcements about Lufthansa’s post-IPO stake percentage have been made yet [1][2].
The Latvian state remains the majority owner of airBaltic, with plans to involve the governments of Estonia and Lithuania by offering them stakes in the airline as well [1][2][4]. Estonia has declined to buy a 10% stake, citing concerns over airBaltic’s financial situation and uncertainty around the IPO timing, while Lithuania has not yet responded to the proposal [2][4].
| Stakeholder | Current Stake (2025) | Potential Future Stake (Post-IPO) | Notes | |-------------|---------------------|----------------------------------|-----------------------------------------| | Lufthansa | 10% | Unclear, potentially stable or increased | Acquired via convertible bonds; seat on supervisory board | | Latvian State | Majority | Likely majority remains | Largest shareholder | | Estonia | None | May buy during IPO but declined initial offer | Interested in supporting airport development but not equity | | Lithuania | None | Undecided | Has yet to respond to stake offer |
The investment by Lufthansa Group builds on their existing wet lease agreement with airBaltic. As a result, Lufthansa Group can now flexibly deploy up to 21 additional aircraft of the fuel-efficient Airbus A220-300 in summer and five aircraft of this type in winter at various Lufthansa Group hubs.
This strategic partnership aims to strengthen airBaltic's role as a strategic partner of Lufthansa Group and improve the quality of Lufthansa’s network, adding additional markets [6]. airBaltic considers this investment as an important milestone towards their IPO [7].
The precise timing of the IPO has not been announced yet, and the deal is subject to regulatory approval [2].
[1] BBC News [2] Bloomberg [3] Reuters [4] AirBaltic Press Release [5] Lufthansa Group Press Release [6] Lufthansa Group Press Release [7] airBaltic Press Release
- Despite Lufthansa Group's indefinite stake in airBaltic post-Initial Public Offering (IPO) being unclear, the Latvian state is expected to maintain the majority ownership, while Lufthansa might either maintain its current 10% or possibly increase it.
- The expansion of Lufthansa Group's involvement in airBaltic affairs goes beyond the wet lease agreement, as Lufthansa Group now has the flexibility to deploy up to 26 aircraft of the fuel-efficient Airbus A220-300 across its various hubs, aiming to strengthen airBaltic's strategic partnership role within the Lufthansa Group.
