airBaltic with EBITDAR and revenue records in Q1 2024

image credit: airBaltic

During today’s investor call of the Latvian airline airBaltic, Martin Gauss, President and CEO, along with the Board Members, CFO Vitolds Jakovļevs and COO Pauls Cālītis, presented the company’s financial results for the first quarter of 2024.

Overall, airBaltic has maintained a trajectory of strong business and operational performance, continuing from its record-breaking results in 2023.

According to unaudited data, the airline achieved record-breaking Q1 revenue of over EUR 132 million, a 27% increase from 2023, coupled with passenger numbers reaching another historic peak with a 20% rise.

airBaltic finished Q1 with EBITDAR of EUR 17.1 million which is an improvement of approximately EUR 19.5 million over Q1 2023.

This year’s EBITDAR sets a new all-time high for the airline’s first-quarter performance.

Martin Gauss, President and CEO of airBaltic: “Current results reflect that this has been a positive quarter, driven by an increase in flights, enhanced operations, and a dedicated focus on customer service.

“These improvements have successfully attracted more passengers and strengthened our results.

“Despite the gains, the airline experienced a net loss, primarily due to seasonal fluctuations and anticipated capacity limitations related to an expected Pratt & Whitney engine shortage in 2024.

“Nevertheless, this does not affect our overall guidance for the year. Moreover, our performance this quarter aligns with management’s expectations, and as such, our outlook for the year remains optimistic.

“Looking ahead, we continue our successful course towards the potential IPO as early as the second half of the year.

“Our core objectives remain unchanged – to ensure the best connectivity from the Baltics, as well as to enhance the passenger experience and deliver a fundamental contribution to the economy.”

During the first three months of 2024, airBaltic carried 926 thousand passengers, an increase of 20% as compared to the same period in 2023. The total number of flights performed in Q1 has increased by 11%, to 9.6 thousand.

Significant improvements were also seen in airBaltic’s overall operational capacity, as evidenced by a 30% increase in available seat kilometers (ASK) to 1.9 billion, compared to 1.5 billion in Q1 2023.

The airline’s load factor has improved to 75.9% from 71%, also the best ever performance in Q1. Total flights, including ACMI, rose to 12.3 thousand in Q1 2024, up from 11.4 thousand in the same quarter the previous year, which is an 8% increase.

Important to mention that, in parallel, at the beginning of May, airBaltic successfully priced a EUR 340 million issue of 14.50% 5.25-year (5 years and 3 months) senior secured bonds.

This is the largest corporate bond issue originating from Latvia. The transaction was well received by both the international and local investment communities, as well as the Latvian State, resulting in a final allocation to more than 100 leading global institutional investors from more than 20 countries across 3 continents.

The demand for the bond exceeded the supply with the final orderbook surpassing EUR 800 million.