Air Baltic is facing significant financial pressure after jet fuel prices in Europe more than doubled to roughly $1,735 per metric ton following the escalation of conflict in the Middle East. As of late March 2026, these fuel price surges have led to the following issues:
The airline’s €380m ($436m) notes due in 2029 dropped roughly 16 cents on March 19, 2026, marking their largest daily decline since being issued in 2024.
Air Baltic is particularly vulnerable because it had hedged only 10% of its fuel consumption, whereas key competitors like Ryanair, EasyJet, and Wizz Air have hedged 60% to 80%.
The airline is seeking additional funding to cover fuel costs, having previously sought €100–150m to manage liquidity after halting a planned IPO.
Air Baltic is in discussions with shareholders and the Latvian government for financial assistance, though Transportation Minister Atis Svinka indicated that a business plan must be submitted before further investment is considered.
Despite the financial strain, the airline continues to operate scheduled flights, though it was forced to cancel flights to Tel Aviv and Dubai due to security reasons.
The price of Air Baltic’s bonds has fallen by nearly 30 cents since the start of the latest Middle East conflict, reflecting severe investor concern over the company’s ability to manage its rising operational costs
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