airBaltic Secures EUR 257 Million Financing Deal to Strengthen Liquidity and Future Growth Plans

Written By: Binoy Mehera

Binoy Mehera

A curious mind driven by a passion for storytelling, I find inspiration in uncovering hidden perspectives, exploring diverse experiences, and shaping ideas into narratives that leave an impact. With three years of experience in journalism and content creation, I have developed a strong instinct for identifying meaningful stories, blending research with creativity, and presenting information in a way that connects with readers. My storytelling journey is guided by a fascination for culture, travel, lifestyle, and the human experiences that define our world. I aim to create narratives that not only inform but also spark curiosity, evoke emotions, and offer audiences a deeper understanding of every story.

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September 3, 2026 11:19 PM

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airBaltic has negotiated funding agreements with selected existing bondholders and third-party financial service providers. This agreement is for potential funding of up to EUR 257 million to improve liquidity and fund its new business plan. This funding package should provide the Latvian carrier with the financial flexibility to pursue its strategies and sustain its operational needs.

The proposed financing package is aimed at providing the Latvian airline with additional financial resources and greater stability as it continues its strategic development. However, the agreement remains subject to approval from airBaltic’s bondholders and shareholders.

A bondholder meeting has been scheduled for 11 September 2026, where the financing proposal will be reviewed and considered.

Following the required approvals and completion of other applicable conditions, EUR 180 million of the financing is expected to become available shortly after the bondholder approval. A further EUR 77 million will be accessible once additional conditions outlined in the agreement have been fulfilled.

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 proposed interim financing will be secured through the issuance of new bonds, with the maturity date set for 26 February 2027.

Financial providers involved in the agreement have committed to making the full financing amount available, provided that the necessary approvals and other required conditions are completed. Existing airBaltic bondholders will also have the option to participate in the financing arrangement.

The funding proposal does not depend on any additional financial contribution from the Latvian State. However, the State, which currently holds airBaltic bonds, may take part in the financing in proportion to its existing bond ownership, in line with recently approved legislation.

The interim financing forms part of a wider strategy to reinforce airBaltic’s financial position, improve liquidity, and support the successful execution of the airline’s new business plan.