AirBaltic’s Gauss Taken By Surprise By Senior Leadership Changes

Longtime airBaltic CEO Martin Gauss has stepped down and COO Pauls Cālītis has taken on the role of interim CEO following a meeting of the Latvian carrier’s shareholders.

Gauss had been at the helm of fast-growing airBaltic since 2011. The airline posted a €118 million ($129 million) net loss for 2024, versus a €33.7 million net profit the previous year, despite posting record revenue of €748 million. Gauss described 2024 as “a year of both growth and external challenges.”

Gauss pointed to €73 million in accelerated depreciation of Pratt & Whitney engines powering airBaltic’s all Airbus A220-300 fleet as one of those external challenges. AirBaltic said that on average through 2024, eight of its aircraft were grounded because of engine issues that have impacted airlines worldwide. Although that was slightly better than the previous year, when nine airBaltic A220s were typically grounded, the airline said it expected problems to continue this year and in 2026.

The announcement of Gauss’ sudden departure on April 7 did not give specific reasons for the management change, although it appears to have come as a shock to Gauss, who told Aviation Daily in a brief phone call on Monday after the announcement was posted and said, “I didn’t know anything about it this morning either ... At the owners’ meeting today, I was informed that the government has lost confidence in me, based on last year’s losses.”

Nevertheless, supervisory board chair Andrejs Martinovs stated his “sincere gratitude to Martin Gauss for his leadership, dedication and vision since 2011. For more than a decade, Martin Gauss guided the company through significant transformation and growth, laying a strong foundation for its future.”

Martinovs said core company and board objectives remained unchanged, including a long-running plan to transition the company to an initial public offering.

As interim CEO, Cālītis will have the continued support of CFO Vitolds Jakovļevs, who stays in that role.

“AirBaltic continues its operations with unwavering commitment to achieving its strategic goals. The company’s operational performance will remain unaffected. Our team is strong and motivated, and we are fully prepared to ensure stability, continuity, and further development,” Cālītis said.

Cālītis joined airBaltic in 1995 as a pilot before transitioning through various management roles and becoming COO in 2020.

Gauss was a Boeing 737 pilot at British Airways subsidiary Deutsche BA before pursuing a management career at that airline. He was also CEO at Malev Hungarian Airlines before joining airBaltic and transitioning it to a hybrid LCC and placing it on a fast growth track.