AirBaltic reports record turnover and profit
Latvian airline airBaltic made €34 million in profit at a turnover of €668 million last year, with the company describing both as records.
AirBaltic's revenue last year was 34 percent higher than in 2022, reaching half a billion euros. This year's turnover was €668 million.
Profit increased by €88 million at the same time: the year before last, the airline incurred a loss of €54 million, but last year it made a profit of €34 million euros. This is the highest profit figure in the history of airBaltic, which has been operating since 1995.
Over the year, airBaltic carried 4.54 million passengers, which was 36 percent more than the previous year. The number of flights grew by nearly a third to 65,500. This figure also includes flights made for other airlines on a lease basis.
The company's EBITDAR, or earnings before interest, taxes, depreciation, amortization and rent, was €159 million and also grew by €76 million over the year.
The airline's president and CEO Martin Gauss said that it was a very successful year of growth, setting records both in terms of sales revenue and the highest profit number in the airline's history.
"Along with other positive indicators of business performance, airBaltic has surpassed the pre-pandemic level," Gauss stated.
Last year, airBaltic launched 38 new direct flights, and their flight network included 126 destinations in total. Currently, they have 47 Airbus A220-300 aircraft, but this year, three more such aircraft are expected to be added. Additionally, in November last year, airBaltic announced an agreement to acquire 30 more Airbus A220-300 aircraft, with an option to purchase another 20 aircraft of the same type.
This year, the airline's focus, according to Gauss, is potentially going public with an initial public offering (IPO).
The largest shareholder of airBaltic is the Latvian state, with a 97.97 percent stake. The remaining 2.03 percent of the company is owned by other shareholders.
In February this year, Latvian media wrote that airBaltic had half a year left to repay the €200 million borrowed from the bond market for five years in 2019. The company may issue new bonds or look for new investors, but it is possible that the Latvian state may need to assist the airline in repaying the loan again.
As of mid-February, airBaltic's equity was €71 million in the red.
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Editor: Karin Koppel, Marcus Turovski
