AirBaltic discusses workforce cuts as airline restructures under Chapter 11
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AirBaltic aircraft approaching landing at Manises Airport, Spain. File photo. |
RIGA — September 15, 2026
Latvian airline AirBaltic is negotiating with labor unions over possible workforce reductions as it restructures its finances under Chapter 11 bankruptcy protection in the United States. Chief Executive Erno Hilden said the airline expects to reduce capacity, making changes to its workforce likely.
The airline filed for protection under Chapter 11 in New York on Monday as it seeks to restructure its debt and address pressure on its finances. Hilden said discussions with unions were already underway, but the company had not yet determined how many employees could be affected.
"We are currently carrying out the consultations with the labour unions," Hilden said, adding that the workforce would likely need to change as the airline reduces capacity.
Hilden said AirBaltic would determine specific workforce numbers after the consultations are completed. The company has not announced a final figure for potential job losses.
The airline's operations are expected to continue without interruption during the Chapter 11 process. Hilden, who previously served as chief financial officer at Scandinavian Airlines during a similar bankruptcy restructuring, said passengers should not expect major changes to normal operations as a result of the proceedings.
The largest changes are expected to affect AirBaltic's wet-lease business. Under this arrangement, the airline provides aircraft and crew to other carriers in exchange for payment, making the business particularly dependent on demand from partner airlines.
Dace Kavasa, chairperson of Latvia's aviation union, said unions and the company were discussing alternative employment arrangements. These could include allowing some employees to move to part-time work instead of being dismissed.
Kavasa said it remained unclear how many workers could lose their jobs. Consultations over possible collective dismissals were continuing, while unions had raised concerns about the criteria being considered for workforce reductions.
The discussions come as airlines face wider pressure from disruptions linked to the Iran war and higher operating costs. AirBaltic's restructuring is intended to address its debt position while allowing the carrier to continue operating.
For now, the number of potential job cuts remains uncertain. AirBaltic and its unions are expected to continue negotiations as the airline develops its restructuring plans and determines the workforce needed for its reduced capacity.
