AirBaltic seeks interim financing as debt pressures mount

Latvian carrier AirBaltic has asked its bondholders for short‑term financing to shore up liquidity while it reviews its capital structure. The airline, which operates a fleet of 55 Airbus A220‑300s, has not disclosed the exact amount needed, but its 2029 £288 million bond has seen yields rise sharply, signalling higher perceived risk. AirBaltic also faces a £22.5 million short‑term loan from the Latvian government that is due in August and must generate a free‑cash‑outflow of about £134 million in 2026 to stay on course.

Latvia’s prime minister, Andris Kulbergs, said the state cannot continue to fund the airline without a clear strategy and a strategic commercial investor taking an active stake. Lufthansa, which holds a stake in AirBaltic, is cited as a potential partner. Rating agency Fitch and the Latvian authorities have warned that the carrier is approaching insolvency, prompting concerns that a bankruptcy could affect travelers. Advice for passengers includes careful ticket‑purchase choices and considering insurance to mitigate potential loss.

The financing effort, described as “interim financing,” aims to give the group a stable platform while it seeks a longer‑term solution and possibly a strategic investor.