airBaltic bond value drops nearly 90% since start of year
The market value of bonds issued by Latvian airline airBaltic has fallen sharply in recent days, down almost 90% since the beginning of the year. The company continues to face financial difficulties and expects to need more funding for the winter season.
The market price of bonds issued by Latvian national airline airBaltic has fallen sharply in recent days. According to Deutsche Börse data, since Monday, August 10, the price has dropped by more than 42%, reaching 16,500 euros per bond.
A steep decline throughout the year
At the start of the year, a single bond traded for nearly 100,000 euros, but its value has since fallen by 83.5%. As recently as late July, the price stood at around 36,000 euros per bond, meaning the decline has accelerated sharply in recent weeks.
airBaltic issued the bonds in 2024, raising 380 million euros. Each bond has a nominal value of 100,000 euros, with investors promised an annual return of 14.5%. The Latvian state also purchased 50 million euros worth of these bonds.
Financial situation remains difficult
airBaltic has for some time been working to revise its business plan and seek new investors and additional funding. Last year the company's turnover reached 779.3 million euros, while losses totaled 44.3 million euros. At the same time, passenger numbers grew to 5.2 million, up 1% compared to the previous year.
Last summer, German airline Lufthansa became a shareholder in airBaltic and currently holds 10% of its shares, while the Latvian state owns 88.37%. Plans for an initial public offering (IPO) of the company's shares have been put on hold following last year's financial results and current market conditions.
airBaltic forecasts that in 2026 it will still lack sufficient funds to cover day-to-day operations. To keep operating through the 2026/2027 winter season, the company may need an additional 100 to 150 million euros, according to its annual report.
