LONDON, Dec 2 (Reuters) - AirBaltic is pushing its

planned initial public offering back to the first half of 2025

or later as its advisers suggest waiting for improved market

conditions in the European sector.

The Latvian airline, which had previously said it would

consider an IPO in the second half of 2024, will instead look to

do it "if there's a better outlook for European airlines",

airBaltic Chief Executive Martin Gauss told Reuters on Monday.

That means the timing of the planned flotation could stretch

into the second half of next year, or even later, although an

announcement on its pre-IPO investor could come sooner, Gauss

said, adding this could technically till be this month.

Reuters previously reported that Germany's Lufthansa

was one of the companies in talks for a strategic

investment in airBaltic.

European airlines have struggled with supply chain delays,

labour disruption, surging prices and limits to airspace this

year, with many reporting weaker than expected financial

results, putting pressure on sector valuations.

ENGINE WOES

Gauss added that the ongoing inspections to RTX's

Pratt and Whitney engines are dragging out and that the

company's compensation is not enough to make up for airBaltic's

loss in revenue from grounding the affected planes.

Two years ago, he said airBaltic would have expected the

engine issues to have been addressed by now. He is being told by

executives that the inspections could drag on for another two

years.

He is hopeful, however, that the European airline market

will recover in the year ahead as demand remains strong, adding

that he is counting on the new European Commission to improve

economic competitiveness across the EU.