Summary
- airBaltic has achieved its highest-ever nine-month revenue figure, thanks to a record-breaking summer and overall demand growth.
- The airline experienced a surge in passenger numbers and flights, driven by escalating demand and network expansion.
In what has already been a week full of good news, airBaltic has another reason to be cheerful after releasing its latest set of financial results. These showed, among other things, that the Latvian flag carrier achieved its highest-ever nine-month revenue between January and September 2023, with passenger numbers also rising.
The key figures
The nine-month figure in question came to a grand total of €510.6 million ($554.2 million) for the January-September period, representing a 41% increase compared to the same window in 2022. This was helped by a strong third quarter, with airBaltic’s revenue in Q3 alone having risen by 28% to €219.3 million ($238 million). Commenting on the strong performance, CEO Martin Gauss stated that:
“Throughout Q3 and the first nine months of 2023, airBaltic consistently demonstrated strong financial and operational performance. This period included a record-breaking summer, with nearly half a million passengers monthly and a steady increase in overall demand. Such growth is reflected in our revenues, surpassing the half-billion euro milestone.”
Photo: Tom Boon | Simple Flying
airBaltic’s net profit for the first nine months of the year amounted to a more modest €9.1 million ($9.9 million). However, this still represents a considerable improvement compared to the €125 million ($135.7 million) net loss that it suffered during the same period in 2022. Gauss notes that performance was impacted by engine supply and reliability issues, without which “the results could have been even stronger.”
Passenger and flight numbers are also on the rise
A key reason behind airBaltic’s recent financial success is that, not only has it been able to increase its capacity by operating more flights, but its number of passengers has also grown at an even faster rate. Indeed, in Q3 this year, the number of non-ACMI flights operated rose by 18% to 13,000, while passenger numbers (1.5 million) were up by a factor of 28%. Reflecting on this growth, Gauss added that:
“During the 2023 summer period, traditionally the peak for the aviation industry, airBaltic benefited from an uplift owing to escalating demand for both leisure and business travel, amplified by the strategic expansion of our network.”
Photo: Luce Borrel | Airbus
As far as the nine-month totals were concerned, January to September this year saw airBaltic carry 3.4 million passengers. This represented a 41% increase compared to the 2.5 million it handled between January and September in 2022. Meanwhile, the number of non-ACMI flights that it operated in the first nine months of the year rose by 19%, from 28,000 in 2022 to 33,000 in 2023.
A week of good news
airBaltic’s strong financial performance is the cherry on the cake during a week of good news for the airline. Indeed, the Latvian flag carrier kicked off the week in style by securing a firm order for another 30 examples of the Airbus A220-300 at the Dubai Airshow. This was followed by the announcement of a codeshare partnership with Delta Air Lines, improving connectivity for Baltic passengers.
What do you make of airBaltic’s latest financial results? Have you flown with the Latvian flag carrier this year? Let us know your thoughts and experiences in the comments!