Lufthansa Group to Invest €14 Million in airBaltic for Minority Stake and Board Seat
As part of the agreement, Lufthansa Group will receive a convertible share equivalent to a 10% stake, issued at a subscription price of 14 million euros.
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The Latvian Ministry of Transport, airBaltic, and Lufthansa Group have announced an agreement under which Lufthansa Group will invest €14 million in airBaltic in exchange for a minority stake and a seat on its Supervisory Board.
As part of the deal, Lufthansa Group will receive a convertible share equivalent to a 10% stake, issued at a subscription price of €14 million. This share will convert into ordinary shares in the event of a potential initial public offering (IPO) of airBaltic. Following the IPO, Lufthansa Group’s stake will be adjusted based on market valuation but will remain at a minimum of 5%.
This transaction strengthens the strategic partnership between the two airlines. Lufthansa Group will appoint a member to airBaltic’s Supervisory Board once the investment is finalized. The deal is expected to close in the second quarter of 2025, pending antitrust review.
Both airlines have maintained a long-standing collaboration in various areas. airBaltic has operated codeshare flights with Lufthansa and its subsidiaries, including SWISS and Austrian Airlines, enhancing connectivity for passengers across Europe. Additionally, Lufthansa Group has worked with airBaltic to optimize operations and interline agreements, improving route integration and the overall passenger experience.
The investment will provide airBaltic with additional funding to support its expansion plans, including the growth of wet lease agreements (aircraft leasing with crew). The agreement also acknowledges airBaltic’s market leadership and hybrid business model.
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