AirBaltic Reports Strong Q1 2026 Results with 12.3% Revenue Growth Amid Challenges

In a recent investor call, Latvian airline airBaltic, led by CEO Erno Hildén and CFO Vitolds Jakovļevs, announced its unaudited financial and operational results for the first quarter of 2026, showcasing a remarkable surge in performance across various metrics. Achieving record-breaking revenue and passenger numbers, the airline demonstrated a solid enhancement in operational efficiency at the EBITDAR level compared to last year. However, external factors beyond its control had an adverse impact on the net profit.

AirBaltic’s revenue for Q1 2026 reached an impressive EUR 149.1 million, representing a 12.3% increase from the same quarter last year. This remarkable growth was significantly influenced by a rise in passenger volumes, increased flight operations, bolstered commercial performance, and the successful expansion of its ACMI (Aircraft, Crew, Maintenance, and Insurance) services.

Despite the seasonal challenges typically faced by airlines during the first quarter, airBaltic recorded a substantial improvement in Adjusted EBITDAR, which soared to EUR 7.0 million, a considerable recovery from a loss of EUR -4.3 million in Q1 2025. This positive turnaround can be attributed to the airline’s growing revenues, improved passenger yields, and enhanced aircraft utilization.

The airline also saw a continuous increase in passenger traffic, successfully transporting 1.044 million passengers within its own network, a rise from 995 thousand during the same period in 2025. When including its ACMI operations, the total number of passengers rose to 1.5 million, compared to 1.3 million in Q1 2025. Both the total passenger count and network volumes established record highs for airBaltic during a first quarter.

Flight operations experienced significant growth, as airBaltic operated a total of 15.1 thousand flights in Q1 2026, increasing from 13.6 thousand flights during the previous year. Of these, network flights accounted for 10.7 thousand, while ACMI flights made up 4.4 thousand, achieving a new record for first-quarter performance. However, the airline’s load factor saw a slight decline to 74.8%, down 1.1 percentage points compared to the previous year.

Despite these operational successes, airBaltic’s net results reflected a downturn, with a loss of EUR -70.1 million for the quarter compared to a loss of EUR -29.3 million in Q1 2025. This deterioration was largely driven by unfavorable foreign exchange conditions, diminished commercial support, and ongoing inflationary pressures affecting various costs.

Erno Hildén, President and CEO of airBaltic, stated: “From an operational perspective, the first quarter was stable for airBaltic, with higher passenger volumes, increased flights, and improved EBITDAR performance. However, the airline industry is still grappling with a challenging operating environment, and external factors continue to affect our financial results. Our primary focus for 2026 will be on enhancing revenue quality, maintaining cost discipline, and maximizing our improved fleet availability.”

Financial Performance Overview

Operational Performance Overview

The airline’s impressive Q1 2026 results were notably influenced by the ongoing conflicts in the Middle East, which strained the financial and operational landscape. As a result, airBaltic suspended its services to Tel Aviv and Dubai, leading to a 1.4% cancellation rate in scheduled flights during March. These geopolitical tensions have introduced additional uncertainties, including increasing fuel prices, airspace restrictions, and overall rising operational costs.

Operational efficiency indicators point to advancements for airBaltic; there was no aircraft unavailability due to Pratt & Whitney engine issues during Q1 2026, showcasing a resolution to prior challenges that had previously grounded multiple aircraft. This critical improvement aids in stabilizing operations and reducing operational costs.

In February 2026, airBaltic welcomed two new Airbus A220-300 aircraft to its fleet, expanding it to 53 aircraft by the close of the quarter. Currently, the airline operates a total of 55 Airbus A220-300, demonstrating its commitment to continued fleet modernization.

As airBaltic looks to the future, the airline aims to enhance operational effectiveness and boost revenue generation. Its strategic focus will continue to include its core network and ACMI services, leveraging improved fleet availability and partnerships throughout 2026.

With over three decades of experience in the aviation industry, airBaltic has successfully connected the Baltic States to more than 80 destinations worldwide, fostering vital infrastructure and enhancing international connectivity within the region.

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