[REVISION HISTORY]

AirBaltic liquidity crisis and bond restructuring

Updated 3 times since CLSTR started tracking revisions of this situation.

What changed

2026-08-11 13:12 UTC → 2026-08-14 07:59 UTC · added ~~removed~~

In late June 2026 Latvia’s finance minister reiterated that state aid was unavailable and warned that any reduction in flight capacity would have to come from airBaltic’s own plan. At the same time shareholders elected a new board, appointing Andrejs Martinovs as chairman, Jurģis Sedlenieks as vice‑chair and Ruta Amtmane as a board member. The board’s mandate includes evaluating the previously discussed capacity cuts. The carrier’s bondholder meeting scheduled for 3 August was further detailed in July. Bondholders will be asked to defer the interest payments due on 14 August and 14 November, capitalising the amounts instead of paying cash, and to waive reserve‑account and minimum‑liquidity requirements for those periods. Procedural changes – shorter notice, reduced quorum‑recall periods and adjusted thresholds for special resolutions – were also proposed, with the Latvian State Treasury representing the government. These steps continue the broader effort, begun in spring, to restructure debt, secure temporary financing and stabilise the airline’s liquidity amid high fuel costs and rising credit risk. By mid-July, the airline announced it was seeking a temporary financing package from bondholders to support a review of its capital structure. This follows a negative outlook from Fitch Ratings and a surge in yields on its 2029 €380 million bonds. Rising jet fuel costs, accounting for up to 30% of operating expenses, have further strained liquidity, with the airline needing funds to meet a €30 million state loan and replenish reserves. Following the August 3 meeting, Standard & Poor's downgraded airBaltic's credit rating to CCC-, warning of a potential default in the coming weeks. Estimates suggest the company requires between €120 million and €170 million in additional capital. The airline has engaged Seabury Securities LLC to explore debt restructuring and new capital attraction.

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