Lithuania is preparing a contingency plan in case Latvian airline AirBaltic cuts its operations in the country or withdraws entirely, Transport Minister Juras Taminskas said Thursday.
Taminskas said a sudden suspension of AirBaltic flights would cause disruption in the short term but urged against speculation and panic while the airline continues operating.
“It would be very unpleasant and, in reality, even a certain shock in the short term if AirBaltic stopped operating flights, but at the moment we are managing the risk,” Taminskas told BNS in Klaipėda.
The minister said he would meet next week with the management of Lithuanian Airports to discuss how authorities should respond if AirBaltic reduces flight volumes or stops services altogether.
“We cannot bury AirBaltic while it is still alive,” Taminskas said, noting that the airline currently continues to operate and provide services in Lithuania. “We are continuing to monitor how the situation develops.”
AirBaltic operates flights from all three of Lithuania’s airports: Vilnius, Kaunas and Palanga.
Taminskas said that even if the airline were to leave Lithuania, its market share would not necessarily be taken over only by low-cost carriers. He pointed to other airlines, including Poland’s LOT and Finland’s Finnair, as potential operators that could expand their presence.
“There are many other flight operators. It is not necessarily only low-cost airlines, as it is being portrayed now in public discussion,” he said. “There is no need to panic in advance.”
AirBaltic has been facing financial difficulties and is reviewing its business plan while seeking new investors and financing. Latvian Finance Minister Māris Kučinskis said earlier this month that the airline would likely need to reduce the scale of its operations.
Latvian Prime Minister Andris Kulbergs has also said the airline cannot continue operating without additional financial support. He said the government is in talks with three potential investors and wants to attract a partner that would reduce the airline’s reliance on taxpayer funding.
International credit rating agency Fitch Ratings has placed AirBaltic and its bonds on watch with a negative outlook.
The airline cancelled planned summer flights between Vilnius and Krakow earlier this year. In 2025, AirBaltic’s group revenue increased 4.2% to 779.3 million euros, while losses totalled 44.34 million euros, a decrease compared with the previous year. The airline carried 5.2 million passengers last year, up 1%.
The Latvian state owns 88.37% of AirBaltic, Germany’s Lufthansa holds a 10% stake, investor Lars Thuesen’s Aircraft Leasing 1 owns 1.62%, and other shareholders hold the remaining shares.
AirBaltic: Lithuania remains an important market
The Latvian company has sent the following statement to LRT.lt:
airBaltic is progressing the implementation of its revised business plan, supported by international financial and legal advisors. The objective of the plan is to further strengthen the company’s financial and operational foundations, ensuring the airline’s continued operations and long-term sustainability. As part of this process, a bondholders’ meeting has been convened for 3 August to consider proposals aimed at facilitating interim financing and supporting the implementation of the plan.
As airBaltic’s bonds are listed on a regulated market, the company discloses any price-sensitive information through official stock exchange announcements and does not comment on market speculation. airBaltic continues to operate normally, with scheduled flights, existing bookings and passenger services unaffected.
Lithuania remains an important strategic market for airBaltic, and the airline continues to see strong demand from Lithuanian passengers. In 2026, airBaltic operates 21 direct routes from Vilnius and two routes from Palanga, continuing to provide reliable connectivity from and to Lithuania.
All existing bookings remain valid, and flights continue to operate as scheduled. airBaltic remains committed to Lithuania and to connecting the country with Europe.
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