Riga and Vilnius outpace Tallinn in flights due to market size

Although Tallinn has fewer direct destinations, Tallinn Airport is still the largest airport in the Baltics in terms of revenue, surpassing both Latvia and Lithuania, says airport chief Riivo Tuvike. Last year Tallinn Airport's revenue was 74 million euros.
This success comes from the fact that Tallinn Airport does not rely solely on aviation fees, which make up only about 30% of its income. The company actively earns revenue from terminal retail, parking, aircraft maintenance hangars and commercial real estate in Airport City.
Tallinn Airport has also experienced a historic surge in passenger numbers this summer, driven by expanding flight options and more affordable ticket prices.
The airport shattered its all-time passenger records during June and July. Tuvike noted that in July, the airport welcomed 384,000 passengers, representing a 19 percent increase compared to the previous year. The appetite for travel has not disappeared since the pandemic, and higher local wealth combined with lower prices has fueled this growth.
Looking at history, in 1991 Tallinn Airport had 758,000 passengers, but the following year, 1992, only about 205,000, so there was a large drop. "Looking at the current year, we believe we will reach 3.7–3.8 million passengers, which is quite a noticeable increase," Tuvike said.
The long-term goal is serving five million travelers annually by 2030.
Passenger volume dictates the decisions
When asked why the airport does not aggressively lower its fees to attract even more airlines, Tuvike points out that market demand and passenger volume — not just cheap airport fees — ultimately dictate an airline's route decisions.
"We could lower the fees even to zero, but if there are no passengers, the airlines will not open those routes," Tuvike said.
"Perhaps our concern in Tallinn is that the region we are able to serve is only about one million passengers. In the end, the number of potential passengers dictates how many possible direct routes there can be," he noted.

Despite the current positive passenger trends, the regional aviation market faces challenges, particularly concerning the financial health of Latvian carrier airBaltic. AirBaltic remains Estonia's most important airline and operates as a home carrier, but Tuvike believes the Estonian government should not buy a stake in the struggling airline.
The entire Baltic region is a very small area in a global scale, Tuvike said. He added that operating a profitable airline in such a limited market is extremely difficult and suggested there are more reasonable areas for state investment.
The airport chief reassured travelers that even if airBaltic were to exit the market, Estonia's flight connections would not collapse. He explained that Tallinn has actively diversified its airline portfolio, such as by facilitating the expansion of low-cost carrier Wizz Air, to ensure that routes can be replaced if necessary.
The rapid growth in passenger traffic has placed significant strain on the existing airport infrastructure. The current terminal was designed to handle up to three million passengers, meaning the current volume is already causing operational friction, including baggage wait times that can reach an hour.
Major expansion of the Tallinn airport ongoing
To address these bottlenecks, the airport is planning a major physical expansion. Tuvike said that while new check-in kiosks have already been installed, the main construction work is scheduled to begin early next year. The project aims to expand the passenger terminal by 50 percent by the first half of 2029, with a specific focus on enlarging the overcrowded baggage claim and border control areas.
Regarding flight destinations, Tuvike emphasized that major hubs remain the most critical connections for Estonian travelers because they open access to the rest of the world. Currently, Warsaw has emerged as the number one destination, with Frankfurt, Riga, and Helsinki also making up the majority of flights.
Tuvike mentioned that while direct flights largely dictate where Estonians go on vacation, his future target destinations for direct flights from Tallinn include London Heathrow and Madrid.
"London Heathrow is definitely a place where we really want to go, because there are so many flight opportunities and it contributes strongly to Estonia's connection," Tuvike said.
Tuvike also addressed the future of Estonia's regional airports, noting that while airports on the country's islands are fully justified due to the lack of fast land transport, the future of mainland facilities like Pärnu Airport is less certain. He pointed out that once the Rail Baltica railway is completed, Pärnu will be just a 45-minute journey from Tallinn, making the local airport's role highly questionable.
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Editor: Laura Raudnagel, Argo Ideon
Source: ERR interview by Liisu Lass











