By Jonas Deveikis, LRT.lt.

Latvia’s national airline airBaltic is facing mounting financial pressure after S&P Global Ratings cut its credit rating to CCC- from CCC+, warning that the carrier may need as much as 170 million euros in additional capital.

Despite the downgrade, the airline says it is continuing normal operations and working to strengthen its finances.

For years, airBaltic has operated on a financial knife-edge. The carrier has invested heavily in a fleet of new Airbus A220-300 aircraft and expanded its network, but those investments have yet to consistently translate into profits. The airline has posted annual losses in four of the past five years, with 2023 the exception.

airBaltic reported a loss of 70 million euros in the first quarter, while its second-quarter results have yet to be released.

Higher fuel prices following the war in Iran have added to the pressure, further weakening the carrier’s financial position.

Read more: LRT.LT