- airBaltic secures €257m interim financing package
- 25 pc annual interest rate on super senior bonds
- Fleet reduces from 54 to 36 A220-300 aircraft
- Shareholder vote scheduled for 11 September 2026
- Q1 2026 net loss of €70.1m reported
Latvia’s national airline airBaltic has agreed terms with investors and bondholders for up to €257m ($299m) in interim debt financing, representing a critical lifeline as the carrier handles severe liquidity strain and rolls out a major corporate restructuring programme. The airline secured commitments from existing bondholders and third-party finance providers including London-based Polus Capital Management and Israel’s Klirmark Capital. The financing will be raised via newly issued higher-priority super senior bonds maturing in February 2027 at a steep 25 pc annual interest rate.
If approved, a first tranche of €180m ($209m) becomes available almost immediately, with the remaining €77m ($90m) released after certain conditions are met. The deal remains subject to official shareholder and bondholder approval, with a decisive voting meeting scheduled for 11 September 2026. The funding comes after airBaltic reported a Q1 2026 net loss of €70.1m, more than double the prior-year period, with high interest on its existing €380m notes and delivery delays of Pratt & Whitney engines forcing the carrier to alter its trajectory.
AirBaltic’s management has launched an updated business plan downsizing the fleet from 54 to 36 Airbus A220-300 aircraft by the end of 2026, retrenching back to its core hub in Riga and significantly reducing reliance on the wet-leasing ACMI market. Regardless of the upcoming vote on 11 September, airBaltic has stressed that its active flight schedules, bookings and customer operations will continue completely uninterrupted. The airline operates across Europe with its fleet of Airbus A220-300 aircraft, serving destinations from its Riga hub.
Erno Hildén, CEO of airBaltic, shared: “The interim financing secures our operations while we implement the restructuring programme.” Hildén added: “Downsizing the fleet from 54 to 36 aircraft reflects the realistic market outlook.” Hildén confirmed: “Active flight schedules, bookings and customer operations will continue completely uninterrupted regardless of the shareholder vote outcome.”
