airBaltic, which employs nearly 3,000 people across the Baltics, announced Monday it is taking steps to adapt its operations to a new business model, including changes to its workforce.

While the exact number of layoffs is still subject to change, the Latvian flag carrier currently estimates that planned changes could affect approximately 500–700 positions across its bases in Riga, Vilnius and Tallinn.

The airline has already notified the Estonian Unemployment Insurance Fund (EUIF)  of the planned collective layoffs but declined to give estimates by base or employee group, saying more details will be shared with staff this month.

"No final decisions have been made regarding individual employees, and we will engage directly with our colleagues as the next steps are determined," CEO Erno Hildén said, pledging transparency and care throughout the sensitive process.

Long-haul overhaul

The measures aim to improve financial stability, streamline airBaltic's network and boost efficiency. The airline has previously announced plans to reduce its Airbus A220-300 fleet and expand year-round ACMI (aircraft, crew, maintenance and insurance) partnerships.

The planned changes will not affect airBaltic's flight schedule, the airline said Monday, with all scheduled flights currently operating as planned.

In mid-September, airBaltic announced it would restructure its financial obligations under U.S. law while continuing to operate normally. The company also secured a new €350 million loan at an interest rate of around 12 percent.

In August, Latvia's Saeima approved a bailout plan for the airline under which the state will provide airBaltic with up to another €30 million in funding and amend the terms of its existing obligations.

airBaltic reported a €44.34 million loss last year, several times smaller than in 2024, while revenue rose 4.2 percent to €779.34.

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