We can see that the demand for flights to the East is growing, although we still have a long way to go to achieve the 2,2 million passengers that were flying to more than 38 Eastern destination from Riga in 1990.

On December 26, airBaltic will operate its first flight to Dubai with a technical stop in Tbilisi. This winter, airBaltic offers flights to Hurghada, Sharm el-Sheikh and Dubai as beach destinations and to Zurich, Munich and Vienna as skiing destinations.

Not only have we grown our network while further improving our profitability; during the first nine months 2006 airBaltic has also increased its turnover to 85,8 million LVL (120 MEUR), a raise of 38% compared to 2005. Our net result shows a profit of 3,4 MLVL (4,8 MEUR), compared to a loss of 1,8 MLVL (2,6 MEUR) last year. The number of passengers has increased by 41% during the same period.

airBaltic is operated according to a traditional service concept, with a business class and an economy class. The pricing in economy is identical to that of the so-called low cost carriers. In terms of fares offered, airBaltic is a true low cost carrier. The reduction in ticket prices has stimulated travel to and from the Baltic States and helped us to generate the best result in the history of our company.

We will continue our efforts to develop our network to destinations where demand is sufficient and we will focus even more on pricing and internet sales in the future. New summer destination from Riga and Vilnius will be announced at the beginning of 2007.

Have a nice flight

Bertolt Flick
President &CEO