Lufthansa said that it has agreed to buy a 10% share in the Latvian airBaltic airline which is preparing to go public, as its latest step to expand its European footprint.

The German flag carrier recently acquired a 41% share in the Italian state-owned airline ITA, and Reuters reported that separate talks are underway to acquire a minor stake in Spain’s Air Europa.

The deal on Wednesday comes before airBaltic plans to list at bourses early in 2026. Reuters reported in September last year that Lufthansa was considering a stake purchase of airBaltic before its IPO.

Lufthansa stated that the stake would be issued in convertible shares, currently at a subscription cost of 14 million euros ($14.56 million). However the stake size might change depending on how airBaltic prices its IPO.

Etihad Airways, flynas and other airlines are preparing to launch initial public offerings in this year. Etihad is aiming to raise USD 1 billion through the sale of a 20% stake, and targets both local and international investors. Flynas plans to list in the Saudi Stock Exchange, backed up by Kingdom Holding. These IPOs are part local governments’ diversification strategies.

Lufthansa also will receive a seat on airBaltic’s supervisory board. AirBaltic stated in a separate press release that the deal will provide additional funding to support their growth and expansion plans.

The transaction is expected to close in the second quarter 2025, subjected to an antitrust review. In 2025, European Airlines will be faced with increased costs, supply chain delays and labour disruptions. They will also face a rise in prices.