airBaltic plans up to 700 jobs cuts as restructuring gathers pace

airBaltic is reportedly preparing to cut between 500 and 700 jobs as the Latvian carrier presses ahead with a restructuring plan following its Chapter 11 filing in the US.

The proposed reductions will affect employees across the airline’s bases in Riga, Vilnius and Tallinn, with the carrier currently consulting with unions over changes to working arrangements.

airBaltic said the redundancies would ensure the “company’s structure and cost base are aligned with the future scale of the carrier”.

Job cuts at AirBaltic after Chapter 11 restructuring 

airBaltic, which employs around 3,000 people, said the final number of job losses has not yet been determined and could change during the consultation process. 

It is also considering reduced workloads for pilots and cabin crew alongside changes to the wider organisational structure. 

The airline expects to finalise the new organisational structure by the middle of October.

CEO says no final decisions made on redundancies

airBaltic has notified the State Employment Agency of the planned collective redundancy process. 

Erno Hildén, president and CEO of airBaltic, acknowledged it was a “sensitive process” and said the priority was to handle it with “transparency, respect, and care, while keeping our employees informed as the process progresses”.

He added: “No final decisions have been made regarding individual employees, and we will engage directly with our colleagues as the next steps are determined. 

“We remain committed to carrying out the process in full compliance with all applicable legal and regulatory requirements, as well as the relevant consultation procedures.”

What went wrong for airBaltic? 

The workforce reductions form part of a broader effort to reduce airBaltic’s costs and scale the business to a smaller operation. 

The carrier has already abandoned its previous ambition to grow its fleet to 100 Airbus A220s and now plans to reduce its fleet from 54 aircraft to around 36 by the end of 2026.

It expects to rebuild only gradually thereafter, with around 40 aircraft planned by 2031.

The restructuring comes after a sharp deterioration in airBaltic’s financial position this year. 

The carrier was particularly exposed to the surge in jet fuel prices that followed the outbreak of the Iran conflict because it had not hedged enough of its fuel requirements.

airBaltic had already been under pressure from its debt burden and aircraft leasing costs. 

In April, the Latvian government provided the airline with a €30 million loan, but further state support was constrained by EU state-aid rules.

Flights continue as Chapter 11 restructuring underway 

The carrier voluntarily started the Chapter 11 process last month to restructure its financial obligations, but has stressed that it will continue to operate flights during the process.  

airBaltic said flights and services would be maintained “without interruption” with all flights operating as scheduled, and tickets remaining valid.

“The airline continues to operate as normal, and all scheduled flights are operating according to plan,” the airline said. 

As part of the Chapter 11 process, new financing has been secured to support the business, with the company having secured a commitment for €350 million in new debtor-in-possession (DIP) financing.