What happened
AirBaltic, the national airline of Latvia with significant operations in Estonia and Lithuania, is restructuring amid financial distress. The airline, majority-owned by the Latvian state (88%) and Lufthansa Group (10%), lost over 70 million euros in the first quarter of 2026 and is seeking 300 million euros in new capital. The Latvian State will not provide additional liquidity but may reduce its ownership stake. Consequently, AirBaltic plans to cut its fleet from 54 to 36 aircraft by the end of the year. The carrier, which operates an all-Airbus A220 fleet, has also leased capacity to Lufthansa Group and maintains partnerships with Air France-KLM and Delta. While collapse is possible if new capital isn't found, operations are expected to continue with a reduced footprint