Air Baltic has moved to engage advisers to explore a partial sale of the carrier to private investors after its push for a public listing stalled, according to people familiar with the matter. The approach comes as the company reassesses funding options in light of a postponed initial public offering.
The flag carrier, where the Latvian state is the majority shareholder, has been preparing for an IPO for several years. The airline had earlier targeted 2025 for a listing, but in November announced that the IPO would be deferred until 2026.
An Air Baltic spokesperson confirmed that the government asked the company to investigate private capital routes alongside the IPO option. That instruction reflects a search for alternatives to a single path to public markets while maintaining the listing as a potential future outcome.
Deutsche Lufthansa AG (ticker: LHAG) currently holds a 10% stake in the airline. Sources indicate that, in any transaction that brings in outside investors, the Latvian state would aim to retain at least 25% plus one share. The government has also set conditions it wants honored in the event of new ownership arrangements - namely keeping the airline's headquarters in Riga and preserving its routes to and from the Baltic region.
The discussions to solicit external private capital do not represent an abandonment of the IPO plan; rather, they expand the set of financing options the company and its principal shareholder are considering. The state’s desire to hold a blocking stake and to ensure the airline’s operational footprint remains tied to the Baltics establishes clear constraints for potential investors.
Details about timing, the identity of potential advisers or prospective buyers were not disclosed by the company or the sources cited. The government’s dual-track instruction—continue preparing for an IPO while simultaneously assessing private investment possibilities—frames the airline’s near-term strategic choices.
As the carrier evaluates these options, the combination of a delayed public listing and active exploration of private stakes means the ultimate ownership mix and listing timetable remain uncertain. The state’s retention targets and operational requirements are likely to shape any final arrangement.