Latvia's Saeima adopts law on Air Baltic financial stabilisation

The Saeima has adopted the Law on Financial Stabilisation Measures for Air Baltic Corporation AS, the national flag carrier of Latvia, according to the official gazette Latvijas Vēstnesis. The law is published in issue No. 162 of 25 August 2026, under the official reference OP 2026/162, as the first item of the parliamentary section of the issue.

The adoption marks a decisive step in the State’s support for the airline, which is majority-owned by the Latvian State. The measure is framed as a financial stabilisation instrument for Air Baltic Corporation AS, and its publication in the official journal gives it legal force.

A state-support decision for the national carrier

The law appears in the “Constitutional institutions — Saeima” section of the gazette, confirming that it was passed by the Latvian Parliament and promulgated for entry into force. As a stabilisation law, it is designed to address the financial position of the carrier through State-backed measures.

The decision is significant because it directly involves public resources and the national interest in maintaining a viable flag carrier. The scope of the stabilisation measures, including any capital, guarantees or other instruments, is set out in the law itself.

What the gazette confirms

The official entry in Latvijas Vēstnesis No. 162 records the law under the heading:

• “Air Baltic Corporation AS” finanšu stabilizācijas pasākumu likums (Law on Financial Stabilisation Measures for Air Baltic Corporation AS), classified as a Likums (Law).

The same issue also publishes other parliamentary acts, including amendments to the Immigration Law, the Law on Maternity and Sickness Insurance, and the Food Circulation Supervision Law, as well as a Constitutional Court notice on case No. 2026-14-01.

Impact for taxpayers and the aviation sector

The stabilisation law is a consequential decision for Latvian taxpayers, who ultimately bear the cost of any State support extended to the airline, and for the aviation sector, which depends on the carrier’s operational continuity. By anchoring the measure in a dedicated law, the Saeima provides a legal basis for the State’s financial engagement with Air Baltic Corporation AS.

The publication in the official gazette makes the measure public and enforceable, giving market participants and the public a clear reference point for the State’s commitment to the national carrier.

Source: Latvijas Vēstnesis, No. 162, 25 August 2026, Constitutional institutions — Saeima (official reference: OP 2026/162).