Record-Breaking Financial Achievements in 2023
In an impressive financial performance, airBaltic announced a record-breaking profit of €34 million for the year 2023. This milestone not only highlights the airline’s robust operational strategy but also sets a new precedent in its financial trajectory. Furthermore, airBaltic made a significant impact on the Latvian corporate finance landscape by successfully issuing the largest corporate bond in Latvia’s history, amounting to €340 million.
Strategic Utilization of Bond Proceeds
The proceeds from the bond issue are earmarked for several strategic initiatives. A substantial portion, €200 million, is allocated for the repayment of an existing bond maturing in July 2024. This preemptive financial management underscores airBaltic’s commitment to maintaining a healthy balance sheet. Additionally, around €40 million will be used to repay state support funds provided during the COVID-19 pandemic, demonstrating airBaltic’s dedication to financial independence and responsibility. The remaining €100 million is designated for ambitious projects including fleet expansion and the introduction of Starlink internet services across all aircraft.
Preparation for an Upcoming IPO
CEO Martin Gauss expressed that the successful bond placement has set the stage for airBaltic’s next big leap – the initial public offering (IPO). The IPO timeline is projected for as early as the second half of this year or could extend up to 2026, depending on market conditions. This strategic move is aimed at bolstering airBaltic’s market presence and capitalizing on its financial health to fuel further growth.
Innovative Projects and Fleet Expansion
airBaltic continues to push the boundaries of innovation and expansion. The airline plans to incorporate advanced technology by rolling out Starlink, making it the first in Europe to offer such cutting-edge in-flight connectivity. The fleet expansion plan is equally ambitious, with a commitment to double the fleet size by 2029, underscoring airBaltic’s vision to transform from a regional player into a significant European airline.