Latvian airline AirBaltic said its planned initial public offering (IPO) may be delayed until next year as investors worry about the industry's ability to make a profit, Bloomberg reports.
CEO Martin Gauss said AirBaltic still hopes to hold its IPO in the second half of this year. He also admitted that if investors don't accept and understand the company's business model, it will likely happen in the first half of next year. Gauss said the company will have to explain its business model to investors.
AirBaltic's president emphasized that this summer season will be better for the company than the previous one, as fewer planes are facing problems with Pratt & Whitney engines. He revealed that the carrier is in talks with Airbus about the possibility of acquiring 20 planes sooner.
Bloomberg recalls that Ryanair Holding caused a big disappointment on Monday. Europe's largest low-cost airline has cut its fare forecast for the industry's key summer season. The carrier hinted at falling demand, confirming concerns that the post-pandemic recovery in air transport is fading.
