The Latvian national airline airBaltic has published its unaudited financial results for the first half of 2026: "During this period, airBaltic increased its revenues and the number of passengers transported. This was facilitated by growth in both the airline's route network and in the ACMI segment (aircraft leasing with crew), as well as a significant improvement in fleet availability. Meanwhile, the sharp rise in fuel prices and higher operating costs negatively impacted profitability. In the second quarter of this year, airBaltic's revenues reached €250.1 million, which is 15.3% higher than the previous year. The growth was driven by higher ticket yields, an increased number of passengers transported, and growth in ACMI activities. airBaltic transported 1.41 million passengers in its route network, which is 3.2% more than the previous year, while the total number of flights operated, including ACMI leasing services, increased by 19.1% to 27,200. However, the escalation of the conflict in the Middle East created a more challenging operating environment and affected profitability. Fuel costs in the second quarter of 2026 compared to the same period last year increased by 79.6% to €66.1 million. Additionally, due to inflation, personnel costs, carbon emission quotas, and other operational expenses also rose. As a result of airspace usage restrictions, airBaltic was forced to use longer flight routes, and flights to Tel Aviv and Dubai were suspended. In response to higher fuel prices, airBaltic had to adjust the capacity for the summer season, canceling approximately 5.7% of the originally planned flight schedule from March to October. The cumulative impact of higher aviation fuel prices on the financial results for the second quarter of 2026 amounts to about €29.3 million. Despite the revenue growth, higher operating costs negatively affected the company's profitability. Adjusted EBITDAR profit in such conditions for the second quarter of 2026 was €27 million compared to €55.2 million the previous year, while the net loss reached €58.1 million (compared to a profit of €27.6 million in the second quarter of 2025). The net result was also affected by fluctuations in foreign currency exchange rates, increased wear and tear due to fleet growth, and higher financing costs. Erno Hildén, President and CEO of airBaltic: "The airline continues to face significant pressure from external factors, including historically high aviation fuel prices that are affecting airlines across the industry. The current operating environment requires greater discipline and focus in managing the business. Our priority is to strengthen the financial foundations of airBaltic and to create a more sustainable operating model, with a particular emphasis on efficiency, sustainable profitability, and financial stability. The recently announced new business plan outlines a clear path to achieving these goals while maintaining airBaltic's important role in ensuring Latvia's connectivity and that of the wider Baltic region." It should be noted that the airline is currently undergoing a legal protection process in a U.S. court to shield itself from creditors and avoid bankruptcy, involving new creditors and the development of a financial recovery plan. The outcome of this process is still unknown.
