Lufthansa Group to take 10% stake in airBaltic
January 29, 2025
Lufthansa Group has signed an agreement to acquire a 10% stake in Latvian national airline airBaltic, in form of convertible shares, with an investment of €14 million.
As part of the deal, Lufthansa Group will also secure a seat on airBaltic’s supervisory board.
The convertible share will be transformed into ordinary shares upon airBaltic’s potential initial public offering (IPO). The final size of Lufthansa Group’s stake will be determined by market valuation during the IPO but will not fall below 5%.
The investment builds upon the existing partnership between the two airlines, which already includes a wet lease agreement. The move is expected to strengthen airBaltic’s role as a strategic partner for Lufthansa Group, enhancing commercial cooperation and expanding the airline’s network reach.
Lufthansa Group also plans to further develop airBaltic’s wet lease services. Subject to regulatory approval, the transaction is expected to be finalised in the second quarter of this year.
Lufthansa Group and airBaltic’s wet lease agreement for an additional three years beyond summer 2025 allows Lufthansa Group to deploy up to 21 of airBaltic’s fuel-efficient Airbus A220-300 aircraft during the summer season and five during winter across its hubs, enabling greater flexibility in meeting seasonal demand.
AirBaltic, Latvia’s largest airline, operates a fleet of 50 Airbus A220 aircraft from its headquarters and hub in Riga.
