Air Baltic Corp’s bondholders have brought in legal advisers as the Latvian carrier confronts shrinking cash reserves and rising fuel costs.

The move follows reports that the state‑backed airline is scrambling to shore up liquidity, prompting creditors to seek protection.

With fuel prices climbing, the airline’s operating margin tightens, threatening its ability to meet debt obligations and maintain flight schedules.

Bondholders now face a complex restructuring scenario, and their legal counsel will play a key role in negotiating terms that could reshape the company’s capital structure and future earnings.