Air Baltic has announced the closure of all international bases outside of Riga, including its operations at Gran Canaria airport. This withdrawal follows a period of financial instability for the Latvian airline, which reported accumulated losses of €115 million in 2025 and is currently navigating a restructuring plan involving the dismissal of its CEO, Martin Gauss, and a significant reduction of its fleet.
Financial Restructuring and Fleet Reduction
The airline’s survival hinges on a forthcoming board vote scheduled for August 17. The proposed plan requires a financial bailout through a bond issue and capital conversion. Should the board approve the measures, Air Baltic will be forced to reduce its fleet size to between 36 and 40 operational aircraft—a cut of approximately one-third of its current capacity. The company has also cited persistent technical issues with the Pratt & Whitney GTF engines on its Airbus A220 fleet as a contributing factor to its current operational challenges.
Impact on Gran Canaria Tourism
The closure of the base at Gran Canaria airport ends the direct air corridor connecting Northern Europe and the Baltic countries to Maspalomas. This route was a significant driver for high-spending tourists from Nordic nations, Poland, and Belgium. These visitors were noted for their longer stays and higher daily expenditures compared to the average British or German tourist, making them a key demographic for reducing tourism seasonality in the municipality of San Bartolomé de Tirajana.
Did You Know? The loss of the Air Baltic base weakens the diversification of source markets for the region, leaving a gap in connectivity that local competitors may take months to reorganize before the peak winter season begins.
Aviation Sector and Lufthansa Group Involvement
The implications of the airline’s withdrawal extend to the broader European aviation market. The Lufthansa Group, which holds a ten percent stake in Air Baltic, is currently absorbing some of the operational losses while reorganizing its network. The group has been a primary beneficiary of leasing Air Baltic aircraft under the ACMI model, with up to 21 planes flying daily for brands including Swiss and Brussels Airlines.
Because the island relies on these specific connections to capture high-value, non-seasonal travelers, the local tourism sector faces a period of uncertainty as it attempts to shift its dependence away from traditional tour operators and toward new, reliable air links.
Frequently Asked Questions
Why is Air Baltic closing its international bases?
The closure is a result of €115 million in accumulated losses in 2025, the dismissal of CEO Martin Gauss, and ongoing technical problems with the Pratt & Whitney GTF engines on its Airbus A220 aircraft.
What is the status of the airline’s financial survival plan?
The board is set to vote on a financial bailout involving a bond issue and capital conversion on August 17. This plan requires the airline to cut its fleet by one-third.
How does this affect Gran Canaria?
The closure dismantles a direct air corridor used by high-spending tourists from the Baltic and Northern European regions, potentially increasing the municipality’s reliance on traditional tour operators and impacting its efforts to reduce seasonal tourism fluctuations.
How will local tourism operators in San Bartolomé de Tirajana adapt to the loss of these direct Baltic flight connections?