Latvia’s state-backed carrier airBaltic will request interim financing from bondholders at an 3 August 2026 meeting to stabilize liquidity and prevent default[1]. The airline faces a projected funding shortfall of €100–150 million for the 2026/2027 winter season, driven by doubled jet fuel prices following the Iran conflict and a €56.2 million annual interest burden on its €380 million bond[2][5]. Fitch Ratings assigned a negative watch on the carrier’s CCC- credit rating, citing a high likelihood of payment default or debt restructuring without additional capital[1]. While the Latvian government approved a €30 million short-term loan repayable by 31 August 2026, Prime Minister Andris Kulbergs stressed that further state funding requires a revised business plan[4][7]. The carrier, owned 88.37% by Latvia and 10% by Lufthansa, operates with negative free cash flow in 2026 and must secure external capital to maintain operations[3][5].