Air Baltic agrees interim financing terms with bondholders

Air Baltic has agreed terms with a group of bondholders and finance providers for interim financing of up to €257 million ($299 million). The funding will back the carrier's fleet-reduction strategy. A bondholder meeting to consider the proposal is set for 11 September, and the plan also requires shareholder approval. If approved, €180 million is expected to become available shortly, with a further €77 million released after additional conditions are met.

Chief executive Erno Hilden said the financing gives a clear path to secure liquidity for the next phase of development. The carrier's revised business plan requires steps to strengthen its financial position and build a more efficient airline. Hilden added that the interim financing would provide time and resources to implement measures while continuing to operate flights.

Air Baltic unveiled its revised plan last month, reducing its fleet of Airbus A220-300s from 54 to 36 aircraft by the end of this year, with a longer-term target of 41 aircraft by 2031, down from 100 previously envisioned.