airBaltic appears to have obtained some financial breathing room, at least for the short term.
On September 3, 2026, the Riga-based airline announced that it had reached an agreement with some of its current bondholders, as well as some external third-party finance providers, in order to obtain €257 million in interim financing.
The funds will be raised through the issuance of new short-term bonds that will mature on February 26, 2027, and to which the aforementioned finance providers have committed to subscribe.
This agreement, the exact terms of which are not yet fully known, is still subject to approval by the remaining bondholders and shareholders at a meeting to be held on September 11, 2026. Other existing bondholders will also have a chance to participate in this financing round.
If approval is granted, a first tranche of €180 million will become available to airBaltic almost immediately. The remaining €77 million will be disbursed after the airline has met certain conditions, which have not been publicly disclosed.
On announcing the new bond issuance, airBaltic highlighted that this deal is not dependent on the financial participation of the Latvian government, although the latter is able to participate in its capacity as a bondholder, if it so decides, as is any other existing investor.
This fresh bond issuance is being seen by airBaltic’s management as a necessary move to strengthen the airline’s liquidity position as it prepares to implement a thorough restructuring. Over the coming months, airBaltic will dispose of a significant part of its fleet, reduce its network and lower its exposure to the ACMI market.
Two weeks earlier, on August 17, 2026, airBaltic also announced an agreement with bondholders to flexibilize the terms of an existing €380 million credit facility, the high interest rate of which (14%) was weighing down on the airline’s financials. The deal was also aimed at giving airBaltic some financial respite as it attempts to shore up its cash position.