Employment agency refuses to extend airBaltic mass layoff period; up to 700 jobs at risk

Latvia's State Employment Agency (NVA) has declined to extend to 60 days the period that national airline airBaltic must observe before starting a mass layoff. The Latvian Aviation Trade Union (LAA) had asked for the extension. Under its business plan, the company is cutting back operations and could potentially dismiss 500 to 700 employees.

Why the extension was refused

The LAA asked the NVA to use its legal powers and lengthen the period from 30 to 60 days. The union argues that the information and genuine consultations required by the Labour Law and a European Union directive have not been provided so far.

The NVA explains that an extension is an exceptional measure. It can be applied if extra time is needed to deal with the problems caused by the layoffs, or if consultations could still produce another solution. After assessing information from both airBaltic and the union, as well as the company's cooperation during the process, the agency found no grounds for an exception. It added that it is ready to support affected employees within its remit.

How many people could be affected

airBaltic currently employs about 3,000 people, so roughly 20% of staff could be affected. The changes may hit positions at its bases in Riga, Vilnius and Tallinn. The exact number of posts has not been set and may change as the process continues. New organisational structures are to be defined by mid-October, and more detailed information for employees is expected in October.

The LAA represents more than 30% of the airline's pilots and more than 30% of its cabin crew. In consultations, the sides agreed on a single shared pilot list for all three bases, so that no pilot is disadvantaged because of their base. The union urges alternatives: voluntary part-time work, longer unpaid leave, a full voluntary departure offer and re-hiring guarantees.

Financial background

Last year the group's turnover rose 4.2% to €779.344 million, while its loss was €44.337 million, 2.7 times smaller than in 2024. In the first half of this year the loss reached €128.2 million, against €1.7 million a year earlier. The Latvian state owns 88.37% of the shares and Germany's Lufthansa holds 10%.