Airline Chronological History
Air Baltic Corporation AS, operating as airBaltic, stands today as the flag carrier of Latvia and the dominant aviation force in the Baltic region. Its history is a testament to resilience, navigating post-Soviet economic transitions, financial crises, and a complete strategic reinvention.
The airline was officially formed on August 28, 1995. It was born out of a necessity to consolidate and modernize Latvia's aviation sector following the dissolution of the Soviet Union. The new entity was established as a joint venture between the Latvian government, which held just over 51% of the stock, and Scandinavian Airlines System (SAS), holding a substantial minority stake. This partnership with SAS was crucial in the airline’s formative years, providing necessary capital, operational expertise, and connectivity to major Scandinavian hubs.
AirBaltic commenced operations on October 1, 1995. Its initial mission was primarily regional, connecting Riga to cities like Copenhagen, Oslo, and Stockholm. The early fleet was modest, consisting of reliable but aging turboprops like the Saab 340.
To expand its reach and capacity, the airline slowly introduced small jets, such as the British Aerospace Avro RJ70.
Throughout the late 1990s and early 2000s, airBaltic operated essentially as a feeder airline for the SAS network. The branding, service standards, and route structures were heavily influenced by its Scandinavian partner.
By 2003, the airline began to shift its business model, dipping its toes into low-cost carrier practices to compete with emerging budget airlines in Europe, while still maintaining business class services. The fleet grew more complex during this period, adopting Fokker 50 turboprops and eventually introducing larger jet aircraft like the Boeing 737-500 to handle increased passenger traffic and longer routes beyond Scandinavia.
The second phase of airBaltic’s history was marked by dramatic turbulence and a subsequent radical transformation. The global financial crisis of 2008 hit the Baltic states exceptionally hard. Concurrently, the relationship between the stakeholders fractured.
In January 2009, SAS sold its entire stake in airBaltic to the airline’s management, a move that preceded a period of severe financial distress for the carrier. By 2010 and 2011, airBaltic was on the verge of bankruptcy, burdened by debts and scandal regarding its ownership structure.
The Latvian government intervened heavily in late 2011 to save the national carrier, effectively re-nationalizing the airline and eventually acquiring near-total ownership.
A pivotal moment occurred with the appointment of Martin Gauss as Chief Executive Officer in late 2011. Under Gauss’s leadership, the airline initiated a rigorous restructuring program designed to cut massive losses and streamline operations.
A major hurdle to profitability was the airline's inefficient and fragmented fleet. By the early 2010s, airBaltic was operating an unwieldy mix of Boeing 737 Classics, Bombardier Q400 turboprops, and aging Fokker 50s. Running multiple aircraft types created high maintenance, training, and operational costs.
To solve this, the leadership took a bold gamble on a brand-new aircraft program. In 2012, airBaltic placed an initial order for the Bombardier CSeries (specifically the CS300 model), a highly efficient, clean-sheet design aircraft that promised significant fuel savings.
This decision would define the airline's future.
While awaiting these new jets, the airline focused on developing Riga as a true hub, aiming to connect passengers traveling between West Europe and the Commonwealth of Independent States (CIS), leveraging its geographical position.
The modern era of airBaltic began officially on November 30, 2016, when the airline took delivery of the world’s first Bombardier CS300 (later rebranded as the Airbus A220-300 after Airbus acquired a majority stake in the program in 2018).
The introduction of the A220-300 was transformative. The aircraft offered the range to reach far-flung destinations like Abu Dhabi or Tenerife from Riga, but with the economics allowing it to operate profitably on shorter, thinner regional routes.
Recognizing the aircraft's capabilities, airBaltic announced a strategic decision to simplify its operations by transitioning to a single-type fleet. They aggressively phased out their Q400 turboprops and Boeing 737s. By 2020, airBaltic became the first airline in the world to operate an all-Airbus A220 fleet.
Like the rest of the industry, airBaltic faced an existential threat during the COVID-19 pandemic beginning in 2020. The airline grounded operations temporarily and required significant recapitalization from the Latvian state to survive, approved by the European Commission. However, its agile, single-type fleet allowed it to bounce back faster than many competitors operating larger, less efficient aircraft.
In the post-pandemic landscape leading into 2025, airBaltic has aggressively expanded beyond its Riga hub.
It established strong secondary bases in Tallinn (Estonia) and Vilnius (Lithuania), effectively securing its position as the pan-Baltic carrier. It further innovated by launching seasonal bases outside the Baltics, such as in Gran Canaria.
Looking toward the future, airBaltic has continued to increase its firm orders for the A220-300, planning to grow the fleet significantly by the end of the decade. Throughout 2024 and heading into late 2025, the major strategic focus for the airline has been preparations for an Initial Public Offering (IPO). This move is intended to repay state aid received during the pandemic and raise capital for further fleet expansion, cementing airBaltic's status not just as a regional connector, but as a significant, modern European airline.
Airline Factual Information
AirBaltic operates short-haul flights year-round and seasonally from Riga, Tallinn, and Vilnius to approximately 75 destinations across Europe, the Middle East, Africa, and Asia.. It does not run its own long-haul flights but offers long-distance travel via codeshare agreements with Finnair and Lufthansa. Below are the current destinations at the time of publishing:
Updated December 2025
As of 2025, AirBaltic operates an all-Airbus fleet composed of the following aircraft:
Updated December 2025
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