Airport, Latvia, Transport
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Thursday, 02.04.2026, 13:49
airBaltic losses in 2008 reached USD 60 mln
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It is unclear at the moment whether the losses will be compensated by increasing the company's share capital because there has also been unofficial information that the state could withdraw from airBaltic. "Diena" sources in airBaltic inform that increasing the airline's share capital is a matter of survival for airBaltic, because otherwise it could become insolvent.
Airline Industry Update recently reported that airbaltic losses last year reached USD 49.281 million, but the airline rejected the information and said that it was unfounded.
airbaltic spokesman Janis Vanags stressed that the company's official financial results for 2008 would be made public in August.
In 2007, airbaltic posted LVL 1.24 million in profit, and in 2006 – LVL 4.06 million in profit.
One version is that the main reason for airbaltic losses last year was disadvantageous contracts with fuel suppliers. airbaltic council member, Transport Ministry's Aviation Department Director Arnis Muiznieks said, "Yes, basically that is correct." He also said that the losses could have resulted from the rapid expansion of the airbaltic destinations as well as a decrease in the number of passengers, writes LETA.
Former Transport Minister Ainars Slesers (Latvia's First Party/Latvia's Way) also believes that the losses of airbaltic are due to the fuel prices; Slesers also said that he could not be blamed for the company's poor results.
Vanags denies that airbaltic has started talking about the need to raise its share capital because of the alleged losses: "It did not just came up now, we have been talking about it for many years already." airbaltic President Bertolt Flick in a recent interview to Dienas Bizness called the state's delay in making changes in the airline's capital structure "problematic". As the company grows, share capital at LVL 500,000 is insufficient. This delay hampers operations, he said.
The Transport Ministry informs that changing airbaltic management is not on the agenda right now. Flick's performance will be assessed only after the official airbaltic results are released.
airBaltic’s comment specially for BCThe Latvian national airline airBaltic has announced that it will publish its 2008 financial results in August.
Prior to the reporting of officially audited financial results, the airline will refrain from commenting on rumours, speculations and assumptions about the airline’s results last year. The airline is confused why the newspaper Diena is deliberately misleading its readers and manipulating with them by disseminating unverified information and various speculations about the airBaltic's financial performance in 2008.
airBaltic is prepared to confirm previously disclosed information about the fact that the airline completed the year of 2008 at a loss. The airline expects to conclude the year of 2009 with a profit.
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