Lufthansa Group has completed its investment in Air Baltic, which receives a total of €28 million ($32.8 million) because the Latvian government is co-investing on the same terms.

Air Baltic says all the transaction documents have been signed and formalities finalised.

Lufthansa Group senior vice-president for fleet management Alexander Feuersanger will join the supervisory board, along with Ruta Amtmane, deputy chair of Latvian egg-production firm APF Holdings.

These additions will take the supervisory board to five members.

Air Baltic is preparing to attract a broader investment of €250-300 million through an initial public offering, the target date for which is currently the second quarter of 2026.

This will support the carrier’s expansion to a fleet of 100 aircraft, provisionally by the end of 2029.

It took its fleet to 50 Airbus A220s in the first quarter and expects to have 57 aircraft by mid-2026 as a result of lease agreements.

While Air Baltic has 40 more A220s on direct order with Airbus, the delay to the IPO has left “uncertainty” over the timing of future deliveries, said Air Baltic in its half-year financial statement.

“The airline is in discussions with Airbus to explore solutions to minimise fleet delivery delays but the full visibility on future deliveries is likely to come only after a successful IPO or any other funding round to recapitalise the airline,” it added.

But Air Baltic also said the appointment of a permanent chief executive would be a “key milestone in preparing for public market readiness”.

The carrier subsequently disclosed that former SAS finance head Erno Hilden had been selected for the top post and would join the company in December.

Air Baltic achieved a net profit of €27.6 million in the second quarter. It adds that a foreign exchange gain of €61 million help it to slash first-half net losses from €88.7 million last year to just €1.7 million.

It expects adjusted EBITDAR to improve in the second half, increasing from €50.9 million at 30 June to around €160-175 million for the full year. Overall revenues are projected to reach €780-800 million.