Latvia’s national airline, airBaltic, has repaid the first instalment of its state loan amounting to 6.4 million euro, according to the Ministry of Transport (MoT).
The ministry stated that airBaltic was meeting its obligations and had completed the first repayment under the loan agreement in the amount of 6.4 million euro.
The 30 million euros state budget loan was granted to the airline to stabilise its short-term liquidity position and ensure uninterrupted operations while the company implements its business plan.
Under the terms of the agreement, the loan is being disbursed gradually and is to be repaid in instalments. Full repayment of the loan is scheduled until August 31.
The loan disbursement and servicing are managed by the State Treasury, while a working group established by the Ministry of Transport oversees airBaltic’s operations, including the use of the loan funds.
The ministry notes that the airline continues to operate flights according to its planned schedule. The loan helps maintain a stable route network, avoiding abrupt changes and mitigating the impact of rising fuel prices.
At the same time, the airline is implementing measures to stabilise its operations, including assessing route profitability, optimising capacity, and flexibly managing its fleet through a business model based on scheduled services and ACMI (Aircraft, Crew, Maintenance and Insurance) leasing operations.
The ministry emphasises that airBaltic is an important driver of the Latvian and Baltic regional economy.
The company directly employs approximately 3,000 people and indirectly supports thousands more jobs in related industries. Through more than 130 direct routes and connectivity to over 300 destinations worldwide, the airline provides critical transport links that promote investment, exports, and tourism while strengthening Latvia’s international competitiveness.
The ministry previously declined to disclose the loan’s interest rate, stating only that it had been determined in accordance with State Treasury methodology and prevailing market conditions.
Officials explained that more detailed information about the loan terms could nnot be disclosed because the company was a regulated market issuer and was subject to the European Union’s Market Abuse Regulation (MAR).
At the same time, in line with a decision by the Saeima, the Ministry of Transport has prepared and submitted the required information, explanations, and supporting materials to the European Commission on May 5.
The Commission has not yet issued its opinion on the submitted documentation. (BNN)