Latvia's airBaltic faces another investigation of its finances

The LETA newswire learned that the investigation was initiated following a request from Prime Minister Andris Kulbergs (United List). The prosecutor's office also confirmed that it had received Kulbergs' request. This is not the first time that the prosecutor's office has assessed the national airline's finances. It did the same thing as recently as late 2024, when it found no irregularities in connection with the government's decision to support the reduction of airBaltic's share capital. However, news that the request for such a probe has come from the Prime Minister may not reassure the three potential foreign investors with whom he said he was negotiating earlier this week, with a view to them buying into the airline. Latvian airline airBaltic has faced financial difficulties in recent years, and rumours about a possible bankruptcy being aired periodically for years. The losses of the airBaltic Group in the first quarter of this year were 70.064 million euros, which is 2.4 times more than in the first quarter of 2025. Representatives of airBaltic explained that the amount of the loss was affected by fluctuations in foreign exchange rates, financing-related costs, reduced commercial support and constant cost-increasing pressure in several categories. The company has suspended any plans for a potential initial public offering (IPO) which have also been a perennial source of rumour and speculation for years. In mid-April, the Saeima decided to grant airBaltic a €30 million short-term loan from the state budget to alleviate financial difficulties caused by rapidly rising fuel prices. The loan was granted without collateral and will have to be repaid by the end of August. German national airline Lufthansa became a minority shareholder in airBaltic last year, acquiring 10% of airBaltic's shares. The Latvian state now owns 88.37% of airBaltic's shares, while Aircraft Leasing 1, owned by financial investor and Danish businessman Lars Theusen, owns 1.62%.