Latvian Prime Minister Evika Silina said last week that she would like to discuss with Estonia and Lithuania what role neighboring countries could play in helping the airline overcome its difficulties.

"I believe we need to coordinate aviation across the Baltic region together. I will discuss the current situation with my Baltic colleagues in both Estonia and Lithuania, as I know they also actively use airBaltic flights," Silina said, while not specifying what Latvia expects from Estonia and Lithuania this time.

"I do not see how state ownership by Estonia and Lithuania would contribute to this in any way," aviation expert Sven Kukemelk said on the "Terevisioon" morning show commenting on the proposal.

"If, as a country, we wanted to hold some kind of stake in airBaltic, we must keep in mind that half of its fleet operates for third-party airlines. Of the remainder, about 30 percent of flights are from Riga and then roughly 10 percent of those aircraft operate from Tallinn and 10 percent from Lithuania. To invest a large amount of capital in order to hold, say, a third of the airline just to secure 10 percent of flights does not seem like a very good or reasonable investment plan," the aviation expert explained.

AirBaltic's efforts to raise additional funding have so far been unsuccessful — an IPO, or stock market listing, is currently off the table and the war in the Middle East has reduced investor interest in the Latvian airline. Although passenger numbers increased in the first quarter, the more than doubling of jet fuel prices has once again reduced earning potential, ERR reported last week.

Kukemelk does not believe the current situation will significantly affect airBaltic's summer flight schedule. In his view, the real test will come with the transition to the winter schedule at the end of October.

"I think the bigger cuts will come in the winter schedule, which starts on the last Sunday of October. That will be the moment of truth — how much capacity will remain here and how many routes will still be operated," Kukemelk said, while reassuring ticket buyers that European Union rules guarantee passengers protection: if something happens, they are entitled to a refund or the airline must still transport them to their final destination.

Among other things, Kukemelk also encouraged people to buy flight tickets, noting that airlines need customers to operate.

"I am moderately optimistic in this regard. AirBaltic's troubles are nothing new for the Latvian state. It has been something of a rolling 'Santa Barbara' (a once-popular soap opera – ed.) over the past 20 years, during which the Latvian state has consistently found ways to inject more money, totaling over €1 billion across those years," Kukemelk said.

However, Kukemelk noted that rising ticket prices are unavoidable in the current context of increasing fuel costs, both for airBaltic and other airlines.

"On average, we see that within Europe, ticket prices compared to last year are €25–30 higher per one-way trip. So if someone is going on vacation this summer, compared to last year, I think they should expect to pay at least €50–60 more per person. It could be worse as everything depends on what happens with oil prices," Kukemelk added.

Estonian state-owned carrier Nordica (Nordic Aviation Group) filed for bankruptcy in November 2024 and ceased operations after a failed privatization effort. The company faced acute liquidity crises, mounting losses and a failed deal with potential investor Lars Thuesen. Bankruptcy proceedings are ongoing with substantial claims against the company.

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