Air Baltic Chartsa New Coursewith Former SA Sand Finnair Executiveatthe Helm

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  Business and Finance on Tue, Aug 19th, 2025 by Flightglobal

Air Baltic, Latvia’s flag carrier, is embarking on a significant new chapter with the appointment of Martin Jepsen as its next Chief Executive Officer (CEO), effective October 16th, 2023. Replacing Chris Daly, who stepped down after five years leading the airline through a period of substantial growth and recovery following the COVID-19 pandemic, Jepsen brings a wealth of experience from both Scandinavian Airlines (SAS) and Finnair to guide Air Baltic’s continued evolution.

The appointment signals a strategic shift for the airline, moving away from Daly's focus on aggressive expansion and towards a more sustainable and financially disciplined approach. While Daly oversaw a remarkable period of growth, including expanding the fleet and network significantly, recent financial reports have indicated challenges in profitability, prompting a reassessment of strategy under Jepsen’s leadership.

Jepsen’s background is particularly noteworthy. He previously held the role of Head of Finance at SAS for over seven years, where he was instrumental in navigating complex restructuring processes and implementing cost-saving measures during a period of significant turbulence for the airline group. Prior to that, he spent five years at Finnair as Vice President of Financial Planning & Analysis, gaining valuable experience within another key Nordic aviation player. This dual exposure provides him with a unique perspective on the challenges and opportunities facing European airlines.

Air Baltic’s recent performance has been under scrutiny. While passenger numbers have rebounded strongly post-pandemic – exceeding pre-COVID levels in 2023 – profitability remains a concern. The airline operates a modern fleet primarily composed of Airbus aircraft, including A220s which are proving increasingly popular for their efficiency and operational benefits. However, rising fuel costs, inflationary pressures, and increased competition continue to put pressure on margins.

Daly’s tenure saw Air Baltic aggressively expand its network, particularly focusing on routes connecting Riga with destinations across Europe and beyond. This expansion, while boosting passenger numbers, also stretched the airline's resources and contributed to the current financial situation. Jepsen is expected to prioritize a more measured approach, focusing on optimizing existing routes and ensuring profitability before pursuing further significant expansions.

"Martin brings a wealth of experience from two leading Nordic airlines," stated Ansis Kovāls, Chairman of the Air Baltic Board, in an official statement. "His expertise in financial management and strategic planning will be invaluable as we continue to strengthen our position as a key player in the Baltic region and beyond."

The transition period is expected to focus on a thorough review of Air Baltic’s operational efficiency, network performance, and cost structure. Jepsen's initial priorities are likely to include strengthening financial controls, optimizing route profitability, and ensuring sustainable growth. He will also be tasked with fostering a culture of continuous improvement within the airline.

Analysts suggest that Jepsen’s appointment represents a move towards greater financial prudence and stability for Air Baltic. While Daly’s aggressive expansion strategy brought significant gains in market share and passenger numbers, it also created vulnerabilities that need to be addressed. The new CEO's experience in restructuring and cost management positions him well to tackle these challenges.

The airline faces ongoing competition from established carriers like Ryanair and Wizz Air, as well as other regional players. Maintaining a competitive edge will require a focus on operational efficiency, customer service, and strategic partnerships. Jepsen’s leadership is expected to emphasize these areas, ensuring that Air Baltic remains a viable and sustainable force in the European aviation landscape.

Looking ahead, Air Baltic's success under Jepsen's guidance will depend on its ability to balance growth with profitability, adapt to evolving market conditions, and maintain its commitment to providing reliable and affordable air travel for passengers across the Baltics and beyond. The coming months will be crucial as he assesses the airline’s current position and charts a course for future success, marking a significant shift in strategy after a period of rapid expansion under his predecessor.