airBaltic (BT, Riga) is now planning its dual-listing initial public offering (IPO) for the first half of next year, CEO Martin Gauss told investors following the release of the airline’s latest financial report.

Gauss’ comments coincide with warnings he made over the summer when he said investor feedback could lead the carrier to push the IPO into 2025.

In his latest comments, he said airBaltic is waiting for the appropriate market conditions. “We expect this to happen in the first half of 2025. Essentially, we are ready: airBaltic has history, a modern fleet, a management team, and the ability to double its size,” he said.

airBaltic reported a loss before tax of EUR48.5 million (USD51.3 million) for the first nine months of 2024, which compares to a profit of EUR9.1 million (9.6 million) for the same period in 2023. The report also revealed that the group had negative equity of EUR97 million (USD102.6 million) and that current liabilities exceed its assets by EUR161 million (USD170.4 million). However, it added that it believes it can manage its liquidity issues over the next two years.

“The potential timeline for the IPO has shifted to 2025, and the management believes that based on its current cash balance, revenue growth, and operating cash flow projections, as well as capital expenditure flexibility, the airline is expected to be able to manage liquidity needs until an equity financing event takes place either in 2025 or 2026,” the financial report said.

The airline put its net loss down primarily to Pratt & Whitney engine issues, including shortages and accelerated depreciation costs driven by engines undergoing full interval shop visits ahead of schedule (which was partially a result of the powdered metal issue). Gauss also said that currency depreciation and one-off costs associated with the early redemption of airBaltic's previous bond contributed to the negative result.

airBaltic reissued its May 2024 bond and increased its total issue size to EUR380 million (USD411.7 million) in October. The measure was sold to investors at 112.5% of the nominal price, effectively taking the yield to 10.1%, if called in May of 2026, the airline noted.

Media reports have suggested that Lufthansa Group is looking into a potential investment in airBaltic, with insiders claiming talks are ongoing over a potential 10% stake purchase.

airBaltic reported revenue growth of 13% year-over-year to EUR575.3 million (USD609 million) in the nine months to September 30, with the carrier putting this down to a strategic focus on higher-margin ACMI operations and an overall growth in passenger numbers. In the third quarter alone, wet-lease operations contributed to 22% of the total revenues in the three-month period.