Kulbergs: airBaltic is strategically important, but needs a business plan

Prime Minister Andris Kulbergs emphasized at a press conference after meeting with President Edgars Rinkēvičs that airBaltic is a strategically important company that must be given the opportunity to fly. However, this process requires a public mandate – people need to know whether the government will support the airline. Kulbergs expressed frustration that he cannot disclose all information about the company's situation and noted that it is unacceptable for airBaltic to seek funding at the last minute.

"There must be a clear answer – whether airBaltic can fly with sound finances or not. We need to work on attracting a strategic investor so that taxpayer money is not burned every year," the Prime Minister said.

Meanwhile, a statement from airBaltic obtained by Reuters indicates that the airline will seek short-term financing at a bondholder meeting on August 3. The company is trying to stabilize its financial situation and avoid default risk while reviewing its capital structure.

airBaltic, which operates a fleet of 55 Airbus A220-300 aircraft and plans to nearly double that number by 2030, has repeatedly postponed its IPO due to engine delivery delays, leaving a significant number of planes grounded. London Stock Exchange data shows that the yield on the airline's €380 million 2029 bonds has risen sharply since March, reflecting increased investor concern.