Speaking on Latvian television's morning show, Martin Gauss explained that flight cancellations in the aviation industry occur for various reasons. He noted that just before Christmas, airBaltic received another weekly forecast from its engine manufacturer, which indicated an even greater shortage of engines than previously expected. As a result, the airline had to decide which flights to cancel and which airport agreements to adjust regarding arrival and departure times.

Gauss stressed that the airline must evaluate numerous factors when deciding which flights to cancel, as every cancellation impacts other flights and must also make economic sense. Therefore, the airline announced the cancellations as early as possible, on January 2. He added that airBaltic is trying to assist passengers who already purchased tickets by offering alternative connections. However, he emphasized that the airline has the right to notify passengers of cancellations in advance and refund their tickets.

Gauss also mentioned that despite the need to cancel several flights due to engine issues, the airline's long-term lease agreements remain in place.

Earlier, airBaltic had extended its cooperation with German airline Lufthansa for another three years, leasing aircraft along with crews to Lufthansa. This agreement has strengthened speculation that Lufthansa could be a potential investor in airBaltic ahead of the company's stock market listing.

When asked why he rents out aircraft instead of focusing solely on operating flights, Gauss explained that airBaltic's current business model is built around two core activities: leasing aircraft with crews and operating its own flights. According to him, the leasing business is the more profitable side of operations.

"We have contracts, and if we were to simply take back those aircraft, the penalty fees would be far greater than the financial impact of canceling flights," Gauss explained.

At the same time, Gauss promised to continue developing airBaltic using the two mentioned business models.

Gauss: Politicians harming the company

Commenting on statements by politicians regarding possible changes in the company's management, Martin Gauss noted that during his tenure at airBaltic, he has seen many politicians come and go. His approach, he said, has always been to help them understand what the company does. However, he added that when the minister of economic affairs says that he should be dismissed, that's just politics.

"I'm not a politician; I'm a successful airline CEO," Gauss stated. He added that his focus should be on the interests of the airline's employees and passengers. "I can't pay attention to all the noise happening around me. I know politicians argue, maybe because elections are coming up," Gauss remarked.

At the same time, he said he has never seen a situation elsewhere where the owners of a company — politicians representing the state — cause so much harm to the business, with opposition politicians adding to the damage.

"I can't change that […] but I will focus on airBaltic. I'm not involved in politics; I was hired to lead airBaltic," Gauss concluded.

No plan to ask Latvian state for money

Gauss explained that the company's difficult situation stems from various debts and losses incurred in the past, particularly during the COVID-19 pandemic restrictions. However, he emphasized that airBaltic currently has no plans to request additional funds from the government.

This topic was previously addressed by airBaltic's Supervisory Board Chair Klāvs Vasks, who stated that the airline's current bond obligations and interest rates are not sustainable for its long-term operations. According to Vasks, additional capital investment from the government is likely unavoidable.

Vasks noted that airBaltic cannot continue to operate with negative equity accumulated over the years if it aims to meet its obligations and achieve strategic goals. He added that a state capital injection would most likely be necessary unless the government is prepared to relinquish its stake in the company for the benefit of other investors.

In an interview with LTV, Gauss interpreted Vasks' comments to mean that if no investors are willing to put money into airBaltic, the decision about the airline's future will ultimately rest with the shareholders.

"We need to go public and raise money from international investors, not from the government," Gauss said, outlining his vision and reiterating that he has no intention of asking for additional government funds.

He added that positive developments are necessary for this plan to succeed and expressed hope that such progress will be achieved this year.

AirBaltic announces thousands of flight cancellations

Last week, airBaltic announced that it will cancel a total of 4,670 flights during the 2025 summer season due to prolonged maintenance of aircraft engines. Affected passengers will have the option to rebook their flights or receive a full refund. Following this announcement, Riga Airport stated that the cancellations will reduce the airport's projected revenue for that period.

The announcement sparked dissatisfaction among passengers and drew reactions from Latvian politicians. The minister of economic affairs declared that airBaltic CEO Martin Gauss should be dismissed, while the minister of transport promised that the airline's management would be reviewed.

Industry experts speculated that the flight cancellations might be a strategic move to reduce unprofitable routes ahead of airBaltic's planned initial public offering (IPO).

The Latvian state currently owns 97.97 percent of airBaltic's shares, while a financial investor, Danish businessman Lars Thuesen's company Aircraft Leasing 1, holds the remaining 2.03 percent.

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