airBaltic Plans to Cut Up to 700 Jobs as Its Chapter 11 Restructuring Shrinks the Airline

On Monday, October 5, 2026, airBaltic said it is preparing to cut about 500 to 700 jobs across its bases in Riga, Vilnius and Tallinn. The Latvian flag carrier employs about 3,000 people, so the cuts would reach roughly 17% to 23% of its workforce.

The airline called the range a current estimate that could still change. It said no decisions have been made about individual employees, and that staff will get more detail during October.

Passengers should not see a change yet. airBaltic insisted the plan does not affect its current flight schedule, Latvian public broadcaster LSM reported.

Why the Number Is a Range

airBaltic says two open questions decide where the final figure lands. One is its talks with unions over reduced-workload arrangements for pilots and cabin crew; the other is a new organizational structure for the rest of the company, due by mid-October.

The workload talks matter because they trade hours for heads. Every pilot or flight attendant who agrees to fly less is, in principle, one fewer who has to leave.

“No final decisions have been made regarding individual employees,” said President and CEO Erno Hildén. He called it “an important and sensitive process for our people.”

The unions do not see it that way. Dace Kavasa, who chairs the Latvian Aviation Trade Union, told LSM she learned of the plan from the media and that the union had not received the written details that Latvian labor law and EU rules require during consultation.

She told Reuters the union heard the 500-to-700 figure “six minutes before” an employee meeting, said there was “pure union busting” going on, and said talks would only start on October 15.

How a Collective Layoff Works in the EU

airBaltic has notified Latvia’s State Employment Agency, and LSM reports it also told the equivalent agencies in Estonia and Lithuania. That notice is not a formality: it starts a legal clock.

Under the EU’s collective redundancies directive, notified layoffs cannot take effect earlier than 30 days after the authority is told, and national governments may shorten or extend that window. The employer must also consult workers’ representatives “in good time” on ways to avoid the cuts or reduce the number affected.

That is why the announcement reads as a plan rather than a list of names. The range, the mid-October structure and the union talks all sit inside that consultation window.

A Smaller Airline, by Design

The job cuts follow the new business plan airBaltic adopted in August. It shrinks the Airbus A220-300 fleet from 54 jets to about 36 by the end of 2026, then grows it only gradually to around 40 by 2031, after the airline had once planned for about 100.

The network is being pulled back toward Riga International Airport. For summer 2027, airBaltic plans 57 direct destinations from Riga, 13 from Tallinn and eight from Vilnius, according to Aviation24.be.

Frequencies are rising on stronger Riga routes, including London Gatwick, Paris, Vienna, Barcelona and Rome. Thinner flying is going: the airline dropped a planned winter base in Tenerife, with its Groningen and Liège flights, and Riga to Dubai will not return this winter.

The other pillar is ACMI flying, in which airBaltic supplies aircraft, crews, maintenance and insurance to other airlines, notably for Lufthansa Group airlines. Year-round contracts are meant to bring steadier revenue and ease the severe seasonality of the Baltic market.

Where Chapter 11 Stands

airBaltic filed for Chapter 11 in the US Bankruptcy Court for the Southern District of New York on September 14. By September 16, the court had approved its first-day motions and given it immediate access to a first tranche of 140 million euros ($157 million) from a 350 million euro financing package.

Those approvals let the airline keep flying its schedule, pay wages and honor existing bookings, tickets, vouchers and refunds during the case. airBaltic says passengers with upcoming travel do not need to take any action.

The Latvian state holds 88.37% of the voting rights and Lufthansa 10%, so the layoffs are also a political problem. LSM notes they land as Prime Minister Andris Kulbergs assembles a new governing coalition.