airBaltic faces financial issues following high-interest bond issuance

Prime Minister Andris Kulbergs has criticized the previous administration led by Evika Siliņa for the current financial difficulties facing the national airline, airBaltic. He noted that a 2024 bond issuance, which raised a total of 380 million euros at a 14.5% interest rate, was not a sign of success but rather a “very loud warning signal.”

Kulbergs argued that the high interest rate should have been accompanied by a fundamental restructuring plan involving fleet management, cost reduction, capital structure reorganization, and the attraction of strategic investors. Instead, he stated the previous government focused on a growth narrative.

The current administration is now engaging in creditor negotiations involving Seabury and developing a new plan. Kulbergs emphasized that any further state funding will only be considered after the airline undergoes restructuring, secures creditor participation, and establishes a sustainable business model.