Air Baltic’s emergency sale of its remaining fuel hedges brought in only €5.7 million, deepening liquidity pressure at the Riga-based carrier as it worked to shore up cash around debt deadlines and a later restructuring. The move left the airline more exposed just as jet fuel prices climbed sharply, turning a hurried financing step into an added burden for the Baltic carrier.
The hedge unwind formed part of a wider effort to satisfy liquidity requirements linked to a high-yield bond due in 2029. By the time the positions were sold, Air Baltic was already under severe financial strain, with the carrier later filing for Chapter 11 protection in the United States amid debt pressure and a fuel-cost shock tied to the Iran conflict. Initial court approval followed two days later.
The episode underscores how weak hedging, rising fuel prices and leverage can collide quickly at a European airline with limited cash headroom. For Air Baltic, the sale delivered only a modest cash boost while removing protection at a moment when operating conditions were worsening.