Pleasant to fly on they are indeed. The A220 is a nice, quiet aircraft and I found the crews very pleasant as well on my few flights with them.
Here are a few reports on Baltics financial situation.
Aero.de reports that the Republic of Latvia had provided the airline with a short-term emergency loan of 30M€ to cover the spike in fuel costs due to the attack on Iran. It is due to be repaid already on 31st August 2026; there is no word on interest rates.
Some reductions to the flight schedule may occur.
The real millstone around the airlines neck is a 380M€ loan that carries an interest rate of 14.5% pA and has to be paid back by 14th August 2029.
Aerotelegraph basically confirms this. Additionally, it is reported that only 10% of the yearly fuel consumption are hedged, so they are hit hard by the high fuel prices. Latvian Prime Minister Evika Silina considers the airline relevant to Latvias economy and connection to the outside world, therefore the legal requirement for state support would be given. Parliament approval is required; the credit to Air Baltic is seen to be on the same level as the gas oil tax reduction and additional support for farmers. The credit is short-term in nature and due to be paid back by August. PM Silina considers further need for support rather probable, however, for that Air Baltic management would have to show an adapted strategy and convince the government.
CEO Andrejs Martinovs told LETA news agency that this loan would help stabilise the situation. "If nothing extraordinary is to occur, we will be able to pay the money back."