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AirBaltic plans to cut up to 700 jobs - Finance news and analysis from Global Banking & Finance Review
Finance

AirBaltic plans to cut up to 700 jobs

Published by Global Banking & Finance Review

Posted on October 5, 2026

2 min read

· Last updated: October 5, 2026

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airBaltic Plans Job Cuts of Up to 700 Amid Bankruptcy and Restructuring Effort

airBaltic's Workforce Reductions and Financial Restructuring

Scope of Layoffs Across Baltic Bases

Oct 5 (Reuters) - Latvian airline airBaltic is preparing workforce layoffs that could affect about 500 to 700 positions across its bases in Riga, Vilnius and Tallinn.    

Bankruptcy Filing and Restructuring Initiatives

Chapter 11 Bankruptcy and Debt Reduction Strategy

• The carrier filed for Chapter 11 bankruptcy in New York in September, aiming to complete a sweeping restructuring focused on cutting its mounting debt through capacity and fleet reductions

Access to Financing

• AirBaltic gained approval last month to access €140 million ($157 million) from a wider €350 million financing package

Labour Union Negotiations and Workforce Adjustments

Talks with Labour Unions

• CEO Erno Hilden told Reuters in September that the airline was in talks with labour unions over "an adjustment" to the workforce

• The company said on Monday that it is in talks with unions on potential reduced workload arrangements for pilots and cabin crew

Organisational Restructuring Timeline

• New organisational structures for the rest of the company are expected to be defined by mid-October, airBaltic said

• The final number of layoffs could change within the course of the process, it added

Financial Context

($1 = 0.8922 euros)

Reporting Credits

(Reporting by Gianluca Lo NostroEditing by Stine Jacobsen and David Goodman)

Key Takeaways

  • airBaltic has secured an initial €140 million tranche of a €350 million debtor‑in‑possession financing package to aid its Chapter 11 restructuring, with full court approval pending around October 9
  • The workforce reduction of 500–700 jobs is subject to ongoing union consultations; new organizational structures are expected to be defined by mid‑October, and the number could change during the process
  • The airline continues operating normally during restructuring, with flight schedules intact, while adjusting capacity, fleet, and its wet‑lease business to streamline operations

Frequently Asked Questions

How many jobs could airBaltic cut in the upcoming layoffs?
AirBaltic is preparing to cut approximately 500 to 700 positions across its bases.
Why is airBaltic laying off so many employees?
The layoffs are part of a sweeping restructuring aimed at reducing the airline’s mounting debt after filing for Chapter 11 bankruptcy.
Which locations will be affected by airBaltic's layoffs?
The layoffs will affect airBaltic's bases in Riga, Vilnius, and Tallinn.
What financial steps has airBaltic taken during its restructuring?
AirBaltic filed for Chapter 11 bankruptcy and gained approval to access €140 million from a wider €350 million financing package.
Is the exact number of layoffs at airBaltic confirmed?
No, the final number of layoffs could change as discussions with labor unions continue.

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