Latvia’s State Employment Agency (NVA) will not extend the collective redundancy period of national airline airBaltic to 60 days, the agency said on 16 October 2026. It received a letter from the Latvian Aviation Union (LAA) asking for that extension after the airline announced collective dismissals.
Under the Labour Law and an EU directive, a longer period is an exception. The NVA said an exception can apply when extra time is needed to deal with problems caused by the dismissals, or when another solution is still possible while consultations continue. After reviewing information from both airBaltic and the LAA, and the cooperation during the process, the agency found no grounds for that exception. It said it is ready to support employees facing redundancy within its remit.
The union had asked the NVA to use the legal option to move the start of collective dismissals from 30 days to 60. In the union’s view, the information and substantive consultations required by the Labour Law and the EU directive have not been provided so far. airBaltic has said publicly that the reduction could affect 500 to 700 of about 3,000 employees in Riga, Tallinn and Vilnius. The LAA represents more than 30% of the airline’s pilots and more than 30% of cabin crew, as well as other staff.
The union learned from the responsible authority in Estonia that airBaltic filed its notification with the NVA on 29 September this year, at the same time as in Latvia. Consultations produced an agreement on one joint pilot list for the bases in Latvia, Lithuania and Estonia, so that no pilot is put at a disadvantage because of where they work. The airline and the union share a goal of cutting the number of dismissals substantially. The LAA is still urging alternatives, including voluntary part-time work, longer unpaid leave, a full voluntary-departure offer, and rehiring guarantees in line with aviation industry standards.
The possible loss of 500 to 700 jobs follows a reduction in activity set out in the business plan. With about 3,000 people employed, that would be roughly 20% of the workforce. Current forecasts point to 500 to 700 positions at the Riga, Vilnius and Tallinn bases. The exact number is not fixed and may change. The range covers talks with unions on reduced workloads for pilots and cabin crew, and a new company structure that was due to be defined by mid-October. Staff were to receive more detail in October. The airline said it is too early to spell out the effect on particular bases, functions or groups of employees, because individual decisions have not been made.
airBaltic group turnover last year rose 4.2% from 2024 to €779.344 million. Group losses last year were €44.337 million, 2.7 times smaller than in 2024. In 2025 the airline carried 5.2 million passengers, 1% more than in 2024. Losses in the first half of this year were €128.2 million, compared with €1.7 million in the first half of 2025.
Germany’s Lufthansa became a shareholder last summer. The Latvian state now holds 88.37% of the shares, Lufthansa 10%, and Aircraft Leasing 1, a company of Danish financier Lars Thuesen, 1.62%, with 0.01% held by others. Share capital is €41.819 million.