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30-Jan-2025 10:38 AM

Lufthansa Group to acquire minority stake in airBaltic

Lufthansa Group signed (29-Jan-2025) an agreement to invest EUR14 million in airBaltic for a 10% stake and supervisory board seat. The closing of the transaction is planned for 2Q2025, and is subject to antitrust review. The convertible shares will be changed into ordinary shares upon a potential IPO of airBaltic. The future size of Lufthansa Group's stake will be determined by market pricing of the potential IPO, with Lufthansa Group's share amounting to no less than 5%. airBaltic stated the deal provides it with additional funding and supports its growth plans, including the expansion of wet lease agreements. Lufthansa Group stated airBaltic's added capacity enhances flexibility on high demand routes while strengthening connectivity to intercontinental services at the group's hubs. As previously reported by CAPA, Lufthansa Group and airBaltic recently extended their wet lease agreement for a further three years beyond summer 2025. airBaltic is operating up to 21 A220-300s on behalf of Lufthansa Group in summer 2025 and five in the winter schedule at various hubs. [more - original PR] [more - original PR - II]

Background ✨

airBaltic has been actively preparing for an initial public offering (IPO) as it aims to raise up to EUR300 million, with plans to proceed when market conditions allow1 2. The Latvian Government owns a 97.97% stake in airBaltic and intends to retain at least 25% plus one share after the IPO3 4. airBaltic's fleet expansion includes increasing its fleet to 49 aircraft in 2024, with further growth planned for 20255.

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