airBaltic faces restructuring to ensure long-term viability

airBaltic is undergoing a restructuring process to ensure its survival, according to Ero Pergme, a board member of Tallinn Airport operator Tallinna Lennujaam. While there is no immediate threat of flight cancellations, the airline faces two potential paths for its future.

The first scenario involves successfully completing the restructuring, operating with a smaller fleet, and achieving profitability. The second scenario suggests that the airline's business model may eventually be deemed unviable due to competition from larger European carriers, which could lead to the company closing.

Pergme noted that the current efforts to reduce the fleet are logical, as a fleet exceeding 35 aircraft is considered too large for the Baltic market. While airBaltic remains the largest carrier at Tallinn Airport with a 29% market share and continues to operate its scheduled routes, there are signs of shifting consumer behavior, such as shorter booking windows. The airline may need to provide further clarifications regarding its January operations to bolster market confidence.