Government approves a new airline incentive programme for Riga Airport

On 24 March, the Cabinet of Ministers approved a new incentive programme for Riga Airport, aimed at supporting airlines in expanding their route networks from Riga and increasing passenger volumes, thereby strengthening Latvia’s international connectivity in an increasingly competitive aviation market. The approved amendments to Cabinet Regulation No. 111 “Regulations on Charges for Services Provided at the Aerodrome of SJSC Riga International Airport” improve the existing traffic development programme by adapting it to current market conditions, the rising regional competition, and the strategic development goals of Riga Airport.

Laila Odiņa, Chairperson of the Board of Riga Airport commented: “The enhanced incentive programme is essential for Riga Airport to adapt to the new realities of the aviation industry. While the direct passenger segment continues to perform well, the decline in transit traffic due to geopolitical factors is significantly affecting overall growth. The new framework will enable more targeted development of the route network and strengthen Riga’s role as a regional aviation hub.” 

While passenger numbers at Riga Airport are gradually recovering, the aviation sector continues to face structural challenges. Due to geopolitical disruptions, total passenger volumes have not returned to 2019 levels, mainly because of a significant decline in transit and transfer traffic, which cannot currently be fully restored. At the same time, the point-to-point passenger segment shows positive dynamics, exceeding 2019 levels by 6% since the beginning of the year and by as much as 11% in March.

The amendments refine the Airport charges framework by introducing more flexible conditions for applying incentives to support the development of new routes and passenger growth, while maintaining transparency principles. This ensures a balance between the Airport’s development needs and the interests of its users – the airlines.

Riga Airport offers both discounts for opening new destinations and incentives linked to passenger growth. These measures help reduce the initial risks airlines face when launching new routes or increasing capacity, while fostering long-term traffic development. Discounts for new destinations apply to airlines launching routes not previously served from Riga and are granted for a limited period to support the start-up phase, when demand is still developing and commercial risk is higher. Growth incentives, in turn, are applied when an airline increases passenger numbers compared to a defined baseline period.

In line with European Union requirements, Riga Airport consulted airlines operating at the Airport during the drafting process, and the proposal was approved by the Riga Airport User Committee. The new airline incentive scheme will enter into force on 1 April 2026.