October 27, 2020

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AirBaltic: Loss of 185 million euros on sales of 83 million euros

AirBaltic: Loss of 185 million euros on sales of 83 million euros

The number of passengers fell by 64 percent from 2.2 million to 0.8 million and the number of flights by 58 percent. Flight operations were suspended for two months due to the corona crisis. After that, some routes were restored, but the timetable is still far from the old level.

Regular connections from Amsterdam to Vilnius, Tallinn and Riga were also restored, but the last two had to be suspended in early August. Then, due to a resurgence of the corona virus, the Baltic states introduced strict entry restrictions, including mandatory quarantine.

Despite these dramatic numbers and new setbacks, AirBaltic does not have to fear for its survival for the time being. With a capital injection of 250 million euros, the Latvian government now owns 96 percent of the shares. The government sees AirBaltic as an essential infrastructure.

Of course, society has to cut costs. The workforce was therefore reduced and the delivery of the new Airbus A220 was postponed. This is also the only type in the fleet, as the Boeing 737 and Turboprops were taken out of service prematurely.