The Latvian airline airBaltic is announcing that it has agreed terms with certain existing bondholders and third-party finance providers for up to EUR 257 million of interim financing. The financing is intended to strengthen the company’s liquidity and provide the financial resources needed to implement its new business plan.
The proposed financing remains subject to the required approvals from airBaltic’s bondholders and shareholders. The bondholder meeting to consider the proposal has been convened for 11 September 2026.
Subject to these approvals and other applicable conditions, EUR 180 million is expected to become available shortly following bondholder approval. A further EUR 77 million would become available once additional conditions have been met.
Erno Hildén, Chief Executive Officer of airBaltic: “The proposed financing gives us a clear path to secure the liquidity airBaltic needs for the next phase of its development. Our revised business plan requires us to take decisive steps to strengthen the company’s financial position and build a more efficient and self-sufficient airline. Thus, this financing would give us the necessary time and resources to put those measures into action, while continuing to operate flights and serve passengers as planned.”
The interim financing would be raised through the issuance of new bonds and would mature on 26 February 2027.
The finance providers have committed to ensure that the full amount of the proposed financing is available, subject to the required approvals and other conditions. Existing airBaltic bondholders will also have the opportunity to participate in the financing.
The proposed interim financing is not conditional on a financial contribution from the Latvian State. The State, as an existing airBaltic bondholder, may participate in the financing proportionally to its existing bondholding, in accordance with the recently adopted legislation.
The proposed financing is part of the broader measures being taken to strengthen airBaltic’s financial position and implement its new business plan.
About airBaltic:
airBaltic (Air Baltic Corporation AS) is the Latvian flag carrier and a leading airline in the Baltic States, connecting the region with more than 80 destinations across Europe and beyond. The company is majority-owned by the Latvian state, holding 88.37% of voting rights, with Deutsche Lufthansa AG holding 10% and the remaining 1.63% owned by private shareholders. Founded in 1995, the airline operates a modern and one of Europes youngest fleets of Airbus A220-300 aircraft and employs over 3 000 people. In 2025, airBaltic became the first European airline to introduce free high-speed SpaceX Starlink internet onboard its flights.
airBaltic has received numerous international awards recognizing its safety, service quality, innovation, and sustainability. In 2026, the airline was named among the world’s 50 safest airlines by Airline Ratings for the second consecutive year. The same year, APEX awarded airBaltic the Five Star Major Airline Award for its high-quality travel experience and Best Wi-Fi in Europe Award. In 2025, Airline Ratings recognized airBaltic as a global leader in sustainability and one of the most preferred airlines in Europe and the UK. airBaltic has also been named Best Airline in its region by Skytrax for three consecutive years.
Featured image credited to Fintan Horan-Stear
