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Lufthansa Group Takes Minority Stake in airBaltic

The Latvian carrier enhances its position as a premium wet-lease provider.

An airBaltic Airbus A220 (Photo: AirlineGeeks | William Derrickson)

Two European aviation entities, airBaltic and the Lufthansa Group, informed about a new strategic knot on Wednesday.

Capital Injection

The Lufthansa Group has taken a significant step in expanding its strategic partnership with airBaltic, signing an agreement to acquire a 10% convertible stake in the Latvian national airline. The investment, valued at EUR 14 million, also grants Lufthansa Group a seat on airBaltic’s Supervisory Board.

The convertible share will be transformed into ordinary shares upon a potential IPO of airBaltic. While the final stake size will be determined by market pricing, Lufthansa Group’s holding will not fall below 5% post-IPO. This puts one of the estimates for airBaltic’s future market valuation at EUR 280 million. The number would be close to one-third of the current market capitalization of Norwegian Air Shuttle, a close competitor to airBatlic.

airBaltic Airbus A220-300 at Riga Airport (Photo: airBaltic)

Next Step in the Partnership

This move builds upon the existing wet-lease agreement between the two airlines, aiming to enhance Lufthansa Group’s network quality and market reach. It also supports the development of wet lease services, ensuring alignment with customer expectations.

The transaction is expected to close in Q2 2025, pending antitrust approval. Meanwhile, Lufthansa Group and airBaltic have extended their wet-lease agreement for three more years, enabling Lufthansa Group to flexibly deploy up to 21 Airbus A220-300 aircraft in the summer and five in the winter across its hubs.

Airbaltic Airbus A220 in the Latvian national flag livery (Photo: Airbaltic)

Beyond Europe

In addition to strengthening ties with Lufthansa Group, airBaltic is expanding its global presence through a newly announced partnership with SUA Líneas Aéreas, a Latin American startup airline. As part of the agreement, airBaltic will wet lease up to five Airbus A220-300 aircraft to SUA, beginning in October 2025.

Beyond aircraft leasing, airBaltic will support SUA’s operational setup, offering expertise in pilot training, IT and automation, and sustainability initiatives.

Filip Kopeć

Author

  • Filip Kopeć

    A passionate aviation enthusiast that started off his career as an aerospace engineer, but found his true calling on the commercial side of the airline business. Now as a finance guy among avgeeks and an avgeek among finance guys, he has experience working in the Revenue Divisions of three airlines. In his spare time he enjoys traveling, but admittedly sometimes is more about the journey than the destination.

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