"2024 was a year of both growth and external challenges," airBaltic CEO Martin Gauss said in a press release. "We set new records in passenger numbers and revenue, with scheduled flights busier than ever. Demand reached new heights, setting fresh benchmarks in our history. However, industry-wide engine maintenance issues and currency fluctuations impacted the financial performance."

Nonetheless, he added, these are temporary setbacks that do not change the airline's long-term trajectory.

According to airBaltic, its net loss of €118 million last year was attributable primarily to external factors, including the accelerated depreciation of Pratt & Whitney engines, which amounted to €73 million, and currency-related non-cash adjustments, including the depreciation of the euro against the U.S. dollar last year.

The company also cited increased costs related to the servicing of its expanded bond program from May 2024. Last year, airBaltic sold bonds at an interest rate of 14.5 percent.

AirBaltic's revenue, meanwhile, increased 12 percent on year to €747.6 million. The airline's passenger numbers increased 13 percent to total 5.1 million, while the number of flights operated by airBaltic rose 7 percent to 47,000. The company also operated flights on behalf of partnering airlines, primarily Lufthansa.

As of the end of last year, airBaltic's equity capital was in the red by €166 million, meaning its debts exceeded its assets by this amount. The company's current assets total €138 million, while its short-term liabilities amount to €352 million.

Auditor PwC, which reviewed the company's financial results, noted in its comments that airBaltic's financial indicators raise concerns about the company's sustainability.

The auditors pointed out that if airBaltic's management fails to execute its business plan and secure additional capital via the company's planned IPO this year, the Latvian airline may not be able to maintain its business continuity.

This is especially critical given that airBaltic has committed to bondholders to maintain a minimum balance of €25 million in its accounts at all times. As of year's end, airBaltic had €32.9 million in cash.

AirBaltic's number of employees increased by one-tenth last year, reaching 2,700.

The Latvian-owned airBaltic operates 130 routes from Riga, Tallinn, Vilnius, Tampere and seasonally from Gran Canaria to destinations in Europe, the Middle East, North Africa and the Caucasus.

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