airBaltic reported a net loss of €29.3 million, improving from €40.6 million a year prior.
The result comes despite flat revenues at €132.7 million, a positive 0.3% compared to the first quarter in 2024. Passenger revenues fell 2.2% to €110 million, while ACMI lease revenue was up 33.1% to €16.6 million.
The company said “sluggish demand and high competition” impacted revenues and profitability.
Adjusted EBITDAR fell by €21.4 million to a negative €4.3 million. The company said this drop was driven by higher navigation higher navigation charges, increased crew salaries, and capacity constraints caused by the ongoing Pratt & Whitney GTF engine issue. The airline had 13 aircraft on ground (AOG) during the quarter. As a result, company wet leased three aircraft from March 29, 2025.
Operating costs totalled €158.4 million, up from €145.3 million a year prior.
The company carried 1.3 million total passengers during the quarter, up 9.6%, while network passengers were up 7.4% to 995,000. Load factor was flat at 75.9%.
“While we still reported a loss, it represents a notable year-on-year improvement," said airBaltic interim CEO and COO Pauls Calitis. "The results reflect continued revenue growth and stable operations – from passenger numbers and flights to an expanded route network.”
The net loss was driven by higher financing expenses, increased costs associated with carbon emissions, and increases in key operating expenditures.
Calitis continued: “Our strategic focus remains focused on strengthening the company’s operations and preparing for future opportunities, including a potential IPO. We will continue to improve our processes based on commercial and sustainability principles to enhance competitiveness and profitability.”
The company said the timing for the IPO launch is dependent on market conditions and the appointment of a permanent CEO.
For the full year, the company anticipates passengers to increase 5% versus 2024 to 5.2-5.4 million. Total capacity is expected to increase 14%, while network capacity is set to be up 3%.