On August 17, 2026, airBaltic announced that its bondholders have approved amendments to the terms of the airline’s outstanding €380 million 14.5%-interest bonds, which are due in 2029.
These extraordinary resolutions, which have now been greenlighted, were included in a supplemental meeting notice issued by airBaltic on July 28, 2026.
The airline’s new strategic plan, which aims to guarantee financial viability, called for a number of measures to ensure the carrier does not run out of cash.
As per the adopted resolutions, interest payments due on August 14 and November 14, 2026, will be added to the principal of the bonds, rather than paid out.
Bondholders also approved a temporary waiver until November 14, 2026, of the minimum liquidity requirement and it will see some of the bond conditions flexibilized. This includes the temporary disapplication of certain requirements relating to the Bond Service Reserve Account and the amendment of certain notice periods and quorum requirements for future bondholder meetings.
The approval was possible because bondholders representing more than 25% of the outstanding principal amount of the bonds were represented at the meeting, with more than 75% of those that voted supporting these measures.
The relaxation of certain bond conditions is, however, just a first step in the airline’s path to financial sustainability. Other items related to the interim financing of the airline were not voted on at this meeting since they were not part of the agenda.
airBaltic is currently seeking an additional €225 million ($259 million) in interim financing and €100 million ($115 million) in new equity for its recapitalization. On August 11, 2026, the airline’s management presented a business reorganization plan that will see it retrench at its main Riga (RIX) hub and considerably downsize both its fleet and its ACMI wet-leasing business.