airBaltic has announced that it will not move forward with its Initial Public Offering (IPO) and considers it an unviable source of capital for 2026. The airline is expected to operate with a negative free cash flow next year, despite anticipated improvements in operational and commercial performance. The management has outlined that they expect to require additional funding of between €100 million to €150 million for the 2026/2027 winter season to sustain operations.

In light of this financial projection, airBaltic plans to continue operating in cost-saving mode until new funding is secured. The Latvian government's support, as the largest shareholder of airBaltic, is instrumental in the search for new capital from alternative sources. The airline is actively exploring opportunities for mergers and acquisitions (M&A) to bolster its financial position.

To facilitate this process, airBaltic has initiated a selection process for international financial consulting firms with relevant experience in the aviation sector. These financial advisors will play a critical role in identifying and evaluating potential investors and structuring suitable capital raising initiatives that will enable the airline to recover financially and enhance its operational viability in the coming years.