airBaltic plans to cut between 500 and 700 jobs as the Latvian carrier moves ahead with a major restructuring involving a smaller Airbus A220 fleet, fewer destinations and a more concentrated network centred on Riga. The reductions could affect up to almost a quarter of the airline’s workforce.
The airline has started a formal collective-redundancy process covering its operations in Latvia, Estonia and Lithuania as it adapts its organisation to the significantly smaller operation envisaged under its revised business plan.
With airBaltic employing around 3,000 people, the planned reduction of 500 to 700 positions would represent approximately 17% to 23% of its workforce.
The final number of redundancies and their distribution between Riga, Tallinn and Vilnius have not yet been determined. A revised organisational structure is expected to provide greater clarity.
airBaltic says its current flight schedule remains unaffected.
Workforce follows fleet and network reductions
The job cuts are the latest concrete consequence of the restructuring announced by airBaltic in August, when the airline abandoned the aggressive expansion strategy developed in preparation for its planned initial public offering.
Under the revised strategy, financial stability has been given priority over growth.
One of the most dramatic changes concerns the fleet. airBaltic previously envisaged eventually operating around 100 Airbus A220-300s. It now plans to reduce its fleet from 54 aircraft to approximately 36 by the end of 2026, followed by only gradual growth towards around 40 aircraft by 2031.
The smaller fleet is being accompanied by a substantial rationalisation of the airline’s scheduled network.
Riga will remain airBaltic’s primary hub, while Tallinn and Vilnius will have smaller operations concentrating on selected point-to-point routes.
The summer 2027 programme illustrates the change particularly clearly. airBaltic plans to serve 57 direct destinations from Riga, compared with 13 from Tallinn and only eight from Vilnius.
At the same time, frequencies are being increased on several stronger routes from Riga, including London Gatwick, Paris, Vienna, Barcelona and Rome.
The strategy is therefore not simply to operate fewer flights, but to concentrate available aircraft on routes offering the strongest demand and revenue potential.
Route cuts already widespread
The restructuring has already resulted in numerous route withdrawals and frequency reductions.
Lithuania was among the first markets where the retrenchment became apparent, followed by substantial reductions at Tallinn and the elimination of several thinner routes from Riga.
airBaltic also abandoned its planned seasonal base at Tenerife for winter 2026/27, cancelling associated services including planned flights to Groningen and Liège.
More recently, the airline confirmed that Riga–Dubai would not resume for the winter season, although that decision was primarily attributed to geopolitical and operational uncertainty in the Middle East.
Overall scheduled capacity is expected to decline substantially as airBaltic moves towards its smaller operating model.
Greater reliance on ACMI
Another central element of the restructuring is increased use of year-round ACMI operations, under which airBaltic provides aircraft, crews, maintenance and insurance to other airlines.
The company believes longer-term ACMI partnerships can provide more predictable revenue while reducing the severe seasonality of its Baltic scheduled network.
The model has already become an important part of airBaltic’s activities, particularly through cooperation with Lufthansa Group airlines.
Combined with fleet, network and operational measures, airBaltic is targeting approximately €45 million in recurring annual improvements through lower costs and additional revenue opportunities.
The planned workforce reduction is another indication that management is seeking structural rather than temporary savings.
Financial pressure drives restructuring
The transformation comes amid severe financial pressure.
In August, airBaltic unveiled a recapitalisation plan designed to reduce its heavy debt burden and provide sufficient liquidity to implement its new business strategy.
The airline subsequently agreed terms with existing bondholders and third-party finance providers for up to €257 million in interim financing.
The restructuring represents a fundamental change of direction for an airline that until recently was pursuing rapid growth across the Baltic region and preparing for an IPO.
Instead of maximising the number of aircraft and destinations, airBaltic is now concentrating on profitability, cash generation and balance-sheet repair.
The planned elimination of as many as 700 jobs demonstrates the scale of that transformation.
What began with individual route cancellations has developed into a comprehensive restructuring affecting airBaltic’s network, fleet, financing and now its workforce.
For the airline, the objective is clear: emerge as a smaller, more efficient and financially sustainable carrier, with Riga firmly established as the centre of its scheduled network.
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