Air Baltic half-year net loss grows sevenfold amid crisis

Latvian carrier Air Baltic generated a E185m ($215m) net loss during the first six months 2020, representing a nearly sevenfold increase from a E26.6m loss in the same period last year. Revenue declined 62% to E82.5m, while the number of passengers fell at a similar rate to around 800,000 during the pandemic against 2.2m in January-June of last year, Air Baltic says. The number of flights declined 58% to 12,500. CE Martin Gauss states the airline began the year on “a solid track [with] sustainable growth” in January and February before it suspended regular scheduled flights from mid-March until mid-May. “To counteract the crisis, we swiftly cut our capacity and costs, adjusted our business plan Destination 2025 Clean as well as secured financing from our shareholders,” Gauss says. Latvia’s government has agreed to invest up to E250m into the equity of the carrier. The Latvian state’s shareholding in the airline will increase from 80% to 91% under the plan.<br/>