The airline has secured a €350 million financing commitment from a consortium including Barclays, Morgan Stanley, Hayfin Capital Management, Oaktree Capital Management, and Strategic Value Partners. This capital injection aims to stabilize operations while the company negotiates with creditors. Despite the legal filing, management insists that all flights will continue to operate as scheduled.

This move follows a period of intense liquidity pressure that previously required a €30 million state loan in April. The carrier, majority-owned by the Latvian government, is the second major airline to face collapse due to the current geopolitical climate, following the failure of Spirit Airlines in May. Analysts have long warned that airlines with high exposure to fuel price volatility and stretched balance sheets remain the most vulnerable to the current industry crisis, which many now compare to the instability seen during the COVID-19 pandemic.