Latvian airline airBaltic has agreed terms with certain existing bondholders and third-party finance providers for up to €257 million in interim financing. The funds are intended to strengthen liquidity and support the implementation of its new business plan, although the financing remains subject to approval from bondholders and shareholders, as well as other conditions.

A bondholder meeting to consider the proposal has been convened for 11 September 2026. Following bondholder approval and subject to the fulfilment of other applicable conditions, €180 million is expected to become available shortly afterwards. The remaining €77 million would become available once additional conditions have been met.

The financing would be raised through the issuance of new bonds maturing on 26 February 2027. Finance providers have committed to ensuring that the full proposed amount is available, subject to the required approvals and other conditions. Existing airBaltic bondholders will also have the opportunity to participate.

airBaltic Chief Executive Officer Erno Hildén said the proposed financing would provide the liquidity needed for the airline’s next phase of 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,” Hildén said.

According to the airline’s announcement, the proposed financing is not conditional on a financial contribution from the Latvian state. However, the state may participate as an existing airBaltic bondholder, in proportion to its current bondholding and in accordance with recently adopted legislation.

The interim financing forms part of broader measures to strengthen airBaltic’s financial position and implement its new business plan. The announcement did not disclose the interest rate or details of the additional conditions required to access the second portion of the funding.

The Latvian state holds 88.37% of voting rights in airBaltic, Lufthansa holds 10%, and private shareholders hold the remaining 1.63%. Founded in 1995, the airline employs more than 3,000 people and operates a fleet of Airbus A220-300 aircraft, connecting the Baltic region with more than 80 destinations across Europe and beyond.