airBaltic implements fleet reduction and debt restructuring plan

Latvian airline airBaltic is undergoing a major financial and operational restructuring to ensure long-term stability. Creditors have approved a plan to defer the repayment of 380 million euros in bonds until 2029. This includes capitalizing interest payments due in August and November 2026, converting them into principal rather than cash outflows.

To improve liquidity, the airline is significantly reducing its fleet from 54 to 36 Airbus A220-300 aircraft. The remaining 18 aircraft will be placed on the long-term wet lease market. The company is also shifting its business model to focus on its primary hub at Riga International Airport rather than broad expansion.

In Latvia, the Saeima has provided conceptual support for potential state involvement in stabilizing the airline. This includes the possibility of the state purchasing up to 30 million euros in interim bonds and capitalizing existing state claims of approximately 50 million euros into equity. airBaltic is currently seeking 225 million euros in interim financing to support its revised business plan.