The Latvian government is in discussions with a strategic investor to support state-controlled airline airBaltic as it works to strengthen its finances and avoid the risk of default. Prime Minister Andris Kulbergs confirmed that talks with a serious potential partner are underway, adding that the government aims to complete the process this summer.

As part of its recovery efforts, airBaltic will seek short-term financing from bondholders at a meeting scheduled for August 3. The airline is also preparing to unveil a new business plan outlining restructuring measures needed to secure long-term stability. Latvia has made it clear that any investment deal must preserve Riga Airport as airBaltic’s primary operating hub.

The airline has faced mounting financial pressure due to rising operating costs, delays in aircraft engine deliveries, and the loss of Russian and Ukrainian markets following the war in Ukraine. Despite these challenges, airBaltic continues to pursue long-term expansion plans while seeking fresh investment to support its future growth.

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