Latvian carrier Air Baltic reduced its full-year 2025 net loss by 40% to €44.3 million ($51.2 million) from the previous year, driven by a 4% revenue increase to €779 million. The improvement came despite higher operating costs, yield pressures in the first half, and aircraft availability constraints from industry-wide Pratt & Whitney PW1500G engine maintenance issues.
Around one-fifth of revenues stemmed from expanded wet-lease (ACMI) operations, deploying an average of 14 aircraft. Passenger numbers on the scheduled network rose 1% to a record 5.2 million, reaching 8.7 million including ACMI flights. Adjusted EBITDAR stood at €143.9 million, with an 18.5% margin, down from €184.2 million in 2024.
Air Baltic, operating 53 Airbus A220-300s, cut 19 routes from its summer schedule due to engine delays. Ticket yields strengthened in the second half through efficient capacity use, targeted pricing, and robust demand in core Baltic markets. Foreign exchange gains from USD-denominated liabilities also supported results.
New CEO Erno Hilden, appointed in December 2025, stated: “2025 was a challenging year operationally, as the industry continued to face engine maintenance issues that affected aircraft availability and required schedule adjustments. Despite these disruptions and continued cost pressures, we saw steady demand for our services and further development across both network and ACMI operations.” Hilden added that second-half conditions improved financial performance, with focus on efficiency and network growth as fleet availability rises.