Lufthansa Group is deepening its partnership with airBaltic through a strategic investment and an extended wet lease agreement, reinforcing the Latvian airline’s role as a key partner. This move is set to enhance Lufthansa Group’s network flexibility and capacity while strengthening connections across its global hubs.

As part of the agreement, Lufthansa Group will acquire a convertible share representing a 10% stake in airBaltic at a subscription price of €14 million.

This share will be converted into ordinary shares upon airBaltic’s potential initial public offering (IPO), with Lufthansa Group’s final stake being at least 5%, depending on market valuation.

Additionally, Lufthansa Group will secure a seat on airBaltic’s Supervisory Board, solidifying its influence in the airline’s strategic direction.

Strengthening a Longstanding Partnership

This investment builds on the strong collaboration between the two airlines, which started in 2019, and aligns with Lufthansa Group’s broader strategy of expanding commercial partnerships. It allows Lufthansa Group to enhance its network quality, enter new markets, and further develop wet lease services to meet evolving customer expectations.

Wet Lease Agreement Extension

The transaction is expected to be finalized in Q2 of this year, pending antitrust approvals. Meanwhile, Lufthansa Group and airBaltic have also extended their wet lease agreement for another three years beyond the summer of 2025. This extension enables Lufthansa Group to deploy up to 21 additional Airbus A220-300 aircraft in summer and five in winter, ensuring a more agile response to fluctuating passenger demand.

Impact on Network Efficiency

airBaltic, Latvia’s national airline, operates a fleet of 50 fuel-efficient Airbus A220s from its hub in Riga. With the additional aircraft, Lufthansa Group will be able to:

• Serve high-demand destinations more efficiently.
• Improve stability across its intercontinental connections.
• Enhance overall network resilience.