Air Baltic seeks new financing from bondholders to shore up liquidity

State‑supported carrier Air Baltic announced it is seeking a temporary financing package from its bondholders while it reviews its capital structure. The airline plans to raise undisclosed funds to ensure sufficient liquidity during the review period, and each bondholder will have the opportunity to participate.

The move follows a surge in yields on Air Baltic’s 2029 €380 million bonds and a recent negative outlook from Fitch Ratings. Latvian Prime Minister Krišjānis Kariņš warned the airline cannot operate without additional financial backing, noting its strategic importance for Latvia but rejecting the notion of limitless state funding.