Insurers Urge Clients to Insure airBaltic Flights

Amid the financial difficulties of Latvia's national airline airBaltic, Estonian insurance firms advise clients to check their policies carefully, as not all packages cover losses in the event of the airline's bankruptcy.

AirBaltic reported a loss of €44.337 million last year, which is 2.7 times less than in 2024. The Latvian government provided the carrier with a €30 million loan, but the company must repay the short-term loan to the state by the end of August. In September, the European Commission may launch an investigation into possible illegal state aid.

Aviation expert Toomas Uibo believes that given airBaltic's uncertain future, Estonia should already prepare a Plan B. He noted that airBaltic holds the largest market share at Tallinn Airport, so its potential exit would be a very serious event. Not all routes are equally important – business destinations that provide connectivity with other countries are particularly crucial, and their loss could negatively impact Estonia's economy. Uibo recommends focusing on these routes now and starting negotiations with other airlines that could take them over if needed.

However, Eero Pärgmäe, a member of the board of Tallinn Airport, says there is no reason to panic at the moment – airBaltic is meeting its obligations. Even in the worst-case scenario, Estonia would not be cut off from the rest of the world, as many passengers travel via the Riga hub, which competes with other major European transit airports. Competition on major European destinations is high, and airBaltic operates many flights alongside other carriers, so passengers would not be left entirely without options.