Air Baltic faces default risk amid financial troubles
Latvian airline Air Baltic issued bonds worth 380 million euros in 2024 to quickly address a crisis but now lacks funds to pay the next coupon to investors, requiring 27.5 million euros.
Currently, Air Baltic is seeking another tranche of financing from its main shareholder, the Latvian government. This situation highlights significant financial difficulties for the company, which is on the verge of default due to its inability to meet investor obligations.
Air Baltic is the national carrier of Latvia and a key player in the Baltic aviation market, having expanded its fleet and routes over recent years. Financial instability in the airline could impact the regional aviation sector’s stability.
Given its outstanding debt and reliance on government aid, Air Baltic’s future remains uncertain, and investors should closely monitor developments.
The company will likely seek agreements with owners and creditors to avoid bankruptcy and stabilize its financial condition in the coming months.
