Financial results from airBaltic show the carrier lost a total of €265 million last year as the Covid-19 pandemic hit European travel.
The Latvian airline lost €9 million in 2019.
Revenue for 2020 fell 72 per cent to €143 million.
Passenger numbers slumped from five million in 2019, to just 1.34 million last year.
Martin Gauss, chief executive of airBaltic, said: “We saw a dramatic change last year, but airBaltic’s core vision for the future remains the same – to be the number one carrier in the Baltics, providing the best connectivity to and from the region.
“Last year, in the wake of the crisis, we significantly reduced our cost and adjusted the business plan Destination 2025 Clean.
“We took a decision to permanently phase out Q400 and Boeing 737 aircraft and became a single aircraft type operator of the Airbus A220-300 two year ahead of the original plan.”
Last year the airline connected Riga, Tallinn and Vilnius on a total of 76 routes, providing much-needed essential connectivity and cargo shipments for the region.
Gauss added: “We look forward to an increase in travel demand that is now slightly showing some positive signals.
“We have developed several scenarios for the gradual market recovery.
“Our base scenario reduction is currently in line with the industry wide projections, and we are flexible to make further adjustments whenever necessary.
“To support our future return to profit, we will accept additional seven Airbus A220-300 aircraft in 2021,” Gauss concluded.