Lithuania conditions airBaltic investment on airline profitability

Lithuanian President Gitanas Nausėda has stated that Lithuania should not invest in Latvia’s national airline, airBaltic, until the company returns to profitability. Nausėda emphasized that the airline must make radical decisions to reduce costs and increase yields, noting that any potential acquisition of shares must be preceded by a thorough evaluation of financial risks.

Despite the cautious stance, Nausėda noted that Lithuania is interested in the airline's success to ensure flight connectivity during Lithuania's upcoming presidency of the Council of the European Union. Prime Minister Mindaugas Sinkevičius added that while Lithuania would consider an offer to acquire a stake, it would prioritize national interests and assess all arguments first.

This follows recent action by the Latvian parliament, which approved legislation allowing for potential state participation in airBaltic's financial stabilization. This includes the possible acquisition of up to 30 million euros in interim financing bonds and the capitalization of 50 million euros in existing bonds.