airBaltic Declines To Provide 2026 Guidance Amid Worsening Q1 Losses

airBaltic has published its Q1 2026 results, with the Latvian airline deciding against publishing full-year guidance amid worsening quarterly losses.

On May 13, 2026, airBaltic unveiled a €70.1 million ($82.1 million) net loss for Q1 2026, a €40.7 million ($47.6 million) difference compared to Q1 2025. Erno Hildén, the President and Chief Executive Officer (CEO) of the Latvian airline, said that while operationally, the quarter was “stable,” the “wider operating environment remains challenging for the airline industry, and external factors continue to affect our financial results.”

Hildén, who began his tenure at the helm of the carrier on December 1, 2025, added that airBaltic’s focus in 2026 will be “revenue quality, cost discipline, and making full use of our improved fleet availability.”

Significantly, airBaltic’s full Airbus A220-300 fleet is now available. During the three months, none of the airline’s A220-300s were grounded due to Pratt & Whitney PW1500G availability issues. In Q1 2025, airBaltic had an average of 13 A220-300 aircraft grounded. The availability of its fleet supported “greater operational stability and reflected continued progress in resolving the engine-related constraints that had affected deployed capacity and operating costs in previous years.”

As a result, the airline’s capacity, measured in available seat kilometers (ASKs), improved by 7.3% year-on-year (YoY), with the carrier also operating an average of 101 routes, or 6 more than in Q1 2025. Management’s report noted that during the quarter, airBaltic discontinued six routes, including the shift of its Tampere-Pirkkala Airport (TMP) base from permanent to non-permanent.

At the same time, the average utilization of operational aircraft went down by 12.9% YoY. Overall block hours went up 7.2% YoY.

Overall ASKs, which include airBaltic’s aircraft, crew, maintenance, and insurance (ACMI) business, grew by 11.9%. Including ACMI-out, total block hours increased by 12.4% compared to Q1 2025.

On average, airBaltic had leased 9.4 aircraft to other airlines during the quarter. In Q1 2025, that number was 6.2.

Despite the increase in capacity, airBaltic’s yield and revenue per ASK (RASK) improved by 4.8% and 2.4% YoY, respectively. Unit costs, or cost per ASK (CASK), decreased by 0.7%, yet still outpaced the airline’s unit revenues. Ex-fuel CASK was up 4.9% compared to Q1 2025.

airBaltic carried just over 1 million passengers and more than 1.4 million passengers, including those from its ACMI-out operations, in Q1. In Q1 2025, own-network passenger numbers were 0.9 million, and more than 1.3 million when including its wet lease business.

“The increase was driven by growth in both own-network passenger traffic and ACMI-out activity, where production expanded substantially year-on-year. This highlights the continued role of ACMI-out operations in supporting total traffic volumes and balancing the seasonality of airBaltic’s own network operations.”

Overall revenue improved to €149 million ($174.5 million), yet adjusted earnings before interest and taxes (EBIT) worsened by €40.6 million ($47.5 million) to €43.3 million ($50.7 million).

airBaltic specified that the airline’s worsening losses reflected “the impact of foreign exchange movements, financing-related effects and continued cost inflation, rather than a deterioration in underlying operational performance.”

“The outbreak of the war in Iran in late February 2026 introduced additional uncertainty for the aviation industry during the quarter, with broader market impacts expected from higher fuel prices, airspace restrictions, longer routings, and increased operating cost pressure.”

As such, airBaltic’s management considered it “prudent not to provide financial guidance for 2026 at this time.” The airline’s C-suite cited uncertainties regarding fuel price volatility, geopolitical developments, and potential impacts on airspace availability and operating costs. airBaltic also pointed out that the conflict in Iran could impact the “macroeconomic recovery and demand development in airBaltic’s core markets.”

“Subsequent to the reporting date, [airBaltic] received a loan of €30 million [$35.1 million] from the Republic of Latvia. The loan represents additional liquidity support from the principal shareholder.”

At the end of Q1, airBaltic had €32.9 million ($38.5 million) of cash and restricted cash. However, its current liabilities exceeded current assets by €415.1 million ($486.3 million), and the company “continues to operate under constrained liquidity conditions,” with its bond mandating a minimum liquidity level of at least €25 million ($29.2 million).

“Management has implemented a range of cash conservation measures, including optimization of payment terms with suppliers and service providers, deferral of discretionary capital expenditures, and active management of working capital.”

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