Latvian parliament approves short-term €30m loan for Air Baltic

The Latvian parliament has approved a €30 million short-term loan for national carrier Air Baltic following extended political consultations.

The decision was backed by 49 members of the Saeima, while 23 voted against, Caliber.Az reports via Latvian media.

Air Baltic approached the Ministry of Transport in late March, citing the impact of external factors on its financial position. Among the key pressures identified were rising aviation fuel costs, which the airline linked to heightened geopolitical tensions in the Middle East.

The government had already agreed in principle to the loan, but the proposal triggered debate in parliament over the airline’s longer-term prospects.

Opposition lawmakers called for restructuring and a revision of the business model, arguing that further state support would not address structural challenges.

Prime Minister Evika Siliņa has acknowledged that Air Baltic could require additional state assistance in the future.

By Aghakazim Guliyev