airBaltic Postpones IPO to first Half of 2025

‍DALLAS — airBaltic (BT) has decided to wait until the first half of 2025, at the earliest, for its Initial Public Offering (IPO). 

Reuters reports that BT is delaying its planned IPO to the first half of 2025—or later. This is because advisers suggest waiting for improved market conditions in European aviation. 

The Riga-based (RIX) airline said it would consider an IPO in the second half of 2024. However, BT's chief executive, Martin Gauss, said BT will now consider this only when the outlook for airlines in Europe improves.

As such, the timing of BT’s IPO flotation might only occur in the second half of 2025 - or even later. However, Gauss said that an announcement regarding a potential investor may be made soon. 

This could even be during the current month. Lufthansa (LH) is reportedly discussing a strategic investment with the Lithuanian flag carrier.

Challenging Times For European Aviation

Moreover, BT is incurring significant financial losses as many of its scheduled flights have been suspended while aircraft engines are being inspected. Ongoing inspections of aircraft fitted with Pratt and Whitney engines are thus impacting BT’s earnings. 

Furthermore, the compensation offered to BT does cover the revenue losses while numerous aircraft are unable to fly. That said, it is reported that these inspections could continue for up to two more years.

In 2024, many European airlines battled supply chain backlogs, labor issues, rising costs, and airspace restrictions. 

These challenges have impacted most airlines’ balance sheets, often leading to weaker-than-expected financial results. This makes it difficult to determine accurate valuations in the aviation sector, hence the delay in any possible IPO.