Latvian airline airBaltic has unveiled a revised business plan aimed at strengthening its balance sheet, improving profitability and reducing its Airbus A220-300 fleet, while retaining Riga as its primary hub.
Under the restructuring plan, airBaltic expects to operate around 36 A220-300 aircraft by the end of 2026, down from its current fleet of 54. The fleet is then expected to gradually grow to approximately 40 aircraft by 2031, marking a significant shift from the airline’s previous plans to expand toward a 100-aircraft fleet.
Despite the smaller fleet, airBaltic expects to maintain broadly stable scheduled capacity over the longer term. The airline plans to achieve this through higher aircraft utilisation, a more demand-driven network and an expansion of year-round ACMI partnerships.
The carrier is targeting approximately EUR 45 million in recurring annual benefits through cost reductions and revenue-generating initiatives. Revenue is projected to rise from EUR 779 million in 2025 to around EUR 800 million in 2027 and EUR 1 billion by 2031. EBITDAR is expected to reach approximately EUR 300 million by 2031.
As part of its financial restructuring, airBaltic is seeking EUR 225 million in interim financing to address near-term liquidity needs. The longer-term recapitalisation would comprise up to EUR 225 million in new debt and EUR 100 million in new equity, bringing the targeted recapitalisation package to EUR 325 million.
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The proposal also includes converting part of the airline’s 2029 Senior Secured Notes into equity. The remaining portion would be replaced with up to EUR 125 million of reduced debt. The proposed financing and recapitalisation remain subject to bondholder resolutions and other required approvals.
airBaltic expects net leverage to improve substantially, falling from 8.94x in 2025 to approximately 4.8x following the proposed recapitalisation at the end of 2026. By 2031, net leverage is projected to decline further to around 1.6x.
The airline said the revised strategy reflects weaker demand and revenue growth, geopolitical uncertainty and ongoing Pratt & Whitney engine availability constraints.
Despite the restructuring, airBaltic confirmed that it continues to operate its normal flight schedule. Existing tickets, bookings and passenger services will remain unaffected by the plan.
