airBaltic's supervisory board approved (11-Aug-2026) its business plan, designed to strengthen long term competitiveness, establish a sustainable capital structure, support future development and maintain reliable connectivity for Latvia and the wider region. Details as follows:
- Changed operating environment: The previous business plan envisaged sustained growth, supporting expansion towards a 100 aircraft fleet, however the operating environment changed materially. Demand and revenue growth moderated, geopolitical developments in Ukraine and Middle East increased uncertainty and operating costs, and Pratt & Whitney engine availability constraints affected the fleet. The revised business plan demonstrates a shift in priorities, with financial stability first and growth second. It aligns airBaltic's network, fleet, cost base and capital structure with current market conditions. Future growth will be measured and focused on opportunities that support sustainable profitability, cash generation and a stronger balance sheet;
- Connectivity for Latvia and the wider region: The business plan introduces a network strategy centred on Riga as the airline's primary hub. airBaltic will focus on deepening its presence in existing markets, rather than pursuing broad expansion. Company bases will continue to complement the network through selected point to point services, while tactical and seasonal operations will improve fleet utilisation throughout the year. airBaltic expects to operate 36 A220-300 aircraft by the end of 2026 (currently 54), with the fleet gradually increasing to 40 aircraft by 2031. Scheduled capacity is expected to remain broadly stable through improved aircraft utilisation. ACMI partnerships will enable more efficient year round aircraft deployment while reducing seasonal volatility;
- Resilience through ACMI partnerships and a structurally lower cost base: A strengthened commercial partnership with ACMI customers will support airBaltic's return to profitability. Deploying capacity in a more balanced way during both the summer and winter seasons supports margins by materially reducing fixed cost burden during winter season, while mitigating seasonality of the network business, diversifying revenue base and providing greater flexibility to allocate aircraft according to market demand. airBaltic is targeting approximately EUR45 million in recurring annual benefits, primarily through operating cost reductions but also revenue opportunities;
- Recapitalisation: airBaltic is seeking EUR225 million of interim financing to bridge the company to a permanent financing solution. The proposed permanent financing package comprises up to EUR225 million of new debt financing and EUR100 million of new equity capital. The proposed recapitalisation also contemplates partial equitisation of the 2029 Senior Secured Notes, with the remaining portion replaced by new, reduced debt of up to EUR125 million, as well as partial equitisation of selected other balance sheet obligations. [more - original PR]
Background ✨
Latvia’s Parliament approved a precautionary short term loan of up to EUR30 million for airBaltic, with maturity expected at end-Aug-2026, as a broader review of strategy, business plan and capital structure proceeded amid Middle East-related disruption and higher fuel prices1. airBaltic’s 1Q2026 revenue rose 12.3% year-on-year to EUR149.1 million and adjusted EBITDAR improved to EUR7.0 million, but it posted a EUR70.1 million net loss, while ACMI movements reached 44002.