airBaltic's bridge financing talks may exceed 225 million euros
A government adviser says airBaltic could secure more bridge financing than the initially planned 225 million euros, as talks continue ahead of a bondholder meeting before September 4.
Latvia's national airline airBaltic could secure a larger amount of bridge financing than the originally planned 225 million euros if negotiations go well, according to Valters Bolevics, adviser to Prime Minister Andris Kulbergs on transport and major infrastructure projects. He said the 225-million-euro figure is currently the subject of negotiations, and a favorable outcome could result in an even larger sum.
Bolevics noted that the size of the first payment tranche is a key factor, as it must be sufficient to meet the goals set out in airBaltic's turnaround strategy. The date of the next bondholder meeting has not yet been set, but it is planned to take place before September 4.
Parliament passes stabilization law
On Thursday, August 20, Latvia's parliament, the Saeima, gave final approval to a law enabling possible state participation in stabilizing airBaltic's finances. The law allows the state to take part in purchasing new bridge financing bonds worth up to 30 million euros, alongside private investors on identical terms. It also provides for converting existing state-held bonds worth 50 million euros and loan claims exceeding 18 million euros into company equity, as well as extending the repayment deadline for a 30-million-euro state loan to the end of the year.
Bolevics described the law's passage as a positive signal that should help the airline navigate this period of restructuring.
Bondholders back additional flexibility
This week, bondholders approved several measures giving airBaltic more flexibility, including adding interest payments due in August and November to the bond principal instead of paying them out in cash, and a temporary waiver of minimum liquidity requirements until November 2026.
It was previously reported that airBaltic's supervisory board approved a business plan involving 225 million euros in temporary financing, with a longer-term recapitalization plan of up to 225 million euros in new debt and 100 million euros in new equity. By the end of 2026, the fleet is expected to shrink to 36 aircraft from the current 54.
airBaltic group revenue rose 4.2% in 2025 to 779.3 million euros, while losses fell 2.7-fold to 44.3 million euros. The airline carried 5.2 million passengers during the year.
