airBaltic bond prices see sharp decline in market value

The market price of airBaltic bonds has experienced a significant decline. According to Deutsche Börse data, the price of the Latvian national airline's bonds fell by 42.1 percent starting Monday, August 10, reaching 16,500 euros per bond. Since the beginning of the year, when the price stood at 99,750 euros, the value has dropped by 83.5 percent.

In 2024, airBaltic issued 380 million euros worth of bonds with a 14.5 percent annual interest rate and a nominal value of 100,000 euros per bond. The Latvian state purchased 50 million euros worth of these bonds. The airline has been seeking ways to stabilize its financial situation by reviewing its business plan and attracting new investors and funding.

Despite the bond volatility, the airBaltic Group reported a 4.2 percent increase in turnover last year, reaching 779 million euros. Losses were reported at 44 million euros, which is 2.7 times lower than in 2024. In 2025, the airline served 5.2 million passengers, a 1 percent increase over the previous year.

Ownership of the airline is currently split between the Latvian state (88.37 percent), Lufthansa (10 percent), and Aircraft Leasing 1 (1.62 percent). Following a planned initial public offering (IPO), Lufthansa's stake will depend on market pricing, though the deal stipulates they will hold at least 5 percent. The Latvian government has committed to retaining at least 25 percent ownership following the IPO.