airBaltic Carries Over One Million Passengers and Achieves Record-Breaking Q1 2025 with Expanded Routes and Robust Operational Growth Despite Seasonal Headwinds

The Latvian national airline, airBaltic, has once again demonstrated its operational strength and resilience, even amid the typical financial hurdles posed by the first quarter of the year. On its recent investor call, Interim CEO and COO Pauls Cālītis and CFO Vitolds Jakovļevs shared the company’s unaudited financial and operational results for Q1 2025. The presentation offered valuable insights into how the airline performed during a traditionally slow travel season and revealed impressive records in passenger traffic, flight numbers, and route expansion — all crucial indicators of airBaltic’s evolving market footprint.

While the winter months typically bring subdued travel demand, airBaltic appears to be defying broader market constraints by achieving first-quarter records in operational performance. These milestones underscore the airline’s strategic adaptability, smart network management, and strong demand for its growing fleet and services — particularly in the Baltic region and its expanding ACMI (Aircraft, Crew, Maintenance, and Insurance) business.

Strong Passenger Growth Highlights Market Confidence

One of the standout achievements of the quarter was airBaltic’s record-breaking passenger numbers, reaching 1.3 million passengers — the highest Q1 figure in the airline’s history. This included 995,000 network passengers, who flew on scheduled routes, and 334,000 ACMI passengers, highlighting the robust performance of both service models. The figures are especially noteworthy given the subdued seasonal demand that often plagues airlines during the January-to-March window.

This accomplishment confirms that airBaltic continues to attract a loyal and growing customer base, driven by its network reliability, competitive pricing, and comfortable onboard experience. The success also reflects a favorable response to the airline’s expanded route offerings and increasingly visible brand presence across Europe.

Load Factor Holds Firm Despite Increased Capacity

Another positive takeaway from the report is that airBaltic maintained a strong load factor of 75.9%, mirroring its performance from Q1 2024. This stability is important, considering the airline grew its route network significantly, thereby increasing capacity. A steady load factor under expanded operations indicates efficient capacity planning and sustained demand across newly launched and existing routes.

Maintaining this high occupancy rate is particularly commendable when juxtaposed with the increased costs facing airlines industry-wide — from fuel prices and regulatory compliance to staffing and infrastructure.

Network Expansion Fuels Strategic Growth

airBaltic’s aggressive route development strategy is clearly paying off. In the first three months of 2025, the airline expanded its network by 10.5%, jumping from 86 to 95 routes year-over-year. This move aligns with the carrier’s long-term vision of reinforcing its dominance in the Baltic region while serving as a vital gateway between Northern and Central Europe, and beyond.

The airline’s strategy to broaden its connectivity footprint not only boosts regional mobility for travelers and businesses but also enhances the airline’s competitive edge in securing market share from legacy and low-cost carriers operating in overlapping markets.

Financial Results Show Mixed Trends Amid Higher Operating Costs

On the financial front, the company reported Q1 revenue of EUR 132.7 million, reflecting a modest year-on-year increase — an encouraging sign during a seasonally weak quarter. However, adjusted EBITDA fell to EUR 3.1 million, down from EUR 12.6 million in Q1 2024, and adjusted EBITDAR dropped to EUR -4.3 million from EUR 17.1 million the previous year. These declines reflect increasing financial pressures on the airline, stemming from various external and internal factors.

airBaltic cited higher financing costs, carbon emissions-related expenses, and elevated operating expenditures as the main culprits behind the decline in profitability. Notably, these challenges are not unique to airBaltic — they mirror similar headwinds reported across the airline industry in Q1 2025. However, what sets airBaltic apart is its ability to mitigate losses more effectively, posting a reduced net loss of EUR 29.3 million, significantly lower than the EUR 40.6 million reported during the same period last year.

This narrowing of losses suggests operational efficiency and cost controls are beginning to bear fruit, even as macroeconomic conditions and environmental regulations continue to exert upward pressure on expenses.

Flights Surge Reflects Operational Momentum

In a testament to its growing momentum, airBaltic operated 13,600 flights during the quarter, marking a tangible increase in activity across both its scheduled network and ACMI services. This milestone further strengthens its reputation as a reliable and expanding airline, capable of maintaining punctuality and frequency while scaling up operations.

The company’s ability to sustain and grow its flight operations even during Q1 — traditionally the slowest quarter in commercial aviation — illustrates strong demand across its portfolio and efficient use of resources such as its modern Airbus A220-300 fleet.

Forward Outlook and Strategic Positioning

Looking ahead, airBaltic’s continued investment in route growth, fleet utilization, and operational efficiency suggests it is on a firm trajectory toward profitability and market leadership in the Baltic region and Europe’s second-tier aviation markets. The company’s emphasis on expanding its ACMI operations also opens up further growth potential by leveraging aircraft in high-demand markets outside its traditional core.

Given the ongoing challenges of inflation, emissions costs, and economic uncertainty across Europe, airBaltic’s Q1 2025 performance signals confidence, operational excellence, and strategic foresight. With a leadership team actively communicating with stakeholders and transparently sharing its journey, the airline appears to be poised for a robust summer season, when travel demand typically surges and financial performance improves significantly.

As airlines across Europe strive to rebound from past disruptions and adjust to a fast-evolving regulatory and environmental landscape, airBaltic’s Q1 results show that it is not only weathering the storm but also positioning itself to thrive in the next phase of aviation growth.

Financial Performance

Operational Performance