Latvian airline airBaltic has announced the suspension of its initial public offering (IPO) process, citing expectations of a negative cash flow for 2026 despite anticipated improvements in operational and commercial activities. The company's management forecasts that to support its operations during the 2026/2027 winter season, it will require additional financing ranging from €100 to €150 million. Without new capital, airBaltic plans to continue operations under a cost-saving regime in the upcoming year.

To mitigate these financial challenges, airBaltic, with the support of its major shareholder, the Latvian government, is actively seeking to attract new capital from alternative sources. This includes exploring potential opportunities through mergers and acquisitions (M&A). The airline's strategy involves strategic partnerships or alliances that could bring in much-needed financial resources to sustain its operations and improve liquidity.

In support of its new capital-raising initiatives, airBaltic has initiated a selection process for an international financial consultancy firm with relevant experience in the aviation sector. This financial advisor will be tasked with identifying and evaluating potential investors, as well as structuring the appropriate capital raising solutions for the airline. These steps reflect airBaltic's proactive approach to navigating a challenging financial landscape and securing its future viability in the competitive airline market.