Ailing AirBaltic proposes 500 job cuts in scramble to save airline

AirBaltic is preparing workforce layoffs that could affect about 500 to 700 positions
The carrier filed for Chapter 11 bankruptcy in New York in September
AirBaltic gained approval to access €140 million from a wider €350 million financing package
The airline is in talks with unions on potential reduced workload arrangements
AirBaltic has a fleet of some 50 Airbus A220-300 planes
Erno Hilden shared the airline was in talks with labour unions over “an adjustment” to the workforce.

Latvian airline airBaltic has stated it is preparing workforce layoffs that could affect about 500 to 700 positions across its bases in Riga, Vilnius and Tallinn. The carrier filed for Chapter 11 bankruptcy in New York in September, aiming to complete a restructuring focused on cutting its mounting debt through capacity and fleet reductions. AirBaltic gained approval last month to access €140 million from a wider €350 million financing package. CEO Erno Hilden said in September that the airline was in talks with labour unions over an adjustment to the workforce.

The company stated it is in talks with unions on potential reduced workload arrangements for pilots and cabin crew. New organisational structures for the rest of the company are expected to be defined by mid-October. The final number of layoffs could change within the course of the process. AirBaltic has a fleet of some 50 Airbus A220-300 planes and is majority-owned by the Latvian government, with Germany’s Lufthansa holding a 10pc minority stake. The airline operates flights to and from Dublin to cities including Riga, Vilnius, Palanga, Tallinn and Helsinki.

The US war with Iran has caused jet fuel prices to double, sparking the air travel sector’s worst crisis since the Covid-19 pandemic. Investors and executives have warned that carriers with stretched balance sheets risked collapse. AirBaltic filed for Chapter 11 bankruptcy in September.