Ratings agency Fitch has downgraded Air Baltic's long-term default rating to 'CCC-' from 'CCC+', citing acute liquidity pressure and weak financial flexibility. The agency is warning that without external support, Air Baltic could face a liquidity crisis within the next six to 12 months. "In our view, the company will require a large equity injection to sustain operations through 2026," writes Fitch, adding that Air Baltic's near-term cash needs could be supported by a potential state loan and working-capital measures. The downgrade reflects what Fitch sees as "unsustainably high" leverage, driven by heavy lease-adjusted debt and weaker financial performance in 2025, which the agency expects to continue into 2026. It also sees a rising risk of debt restructuring later this year if funding support is not secured. Liquidity has been further pressured by higher fuel prices. Fitch estimates that Air Baltic has hedged only around 10% of its 2026 fuel needs, leaving it highly exposed to elevated oil and jet fuel prices. Fitch notes the airline is seeking a €30 million ($35 million) short-term loan from the Latvian state, which could provide a temporary liquidity bridge into the seasonally stronger summer period. However, external funding – through an equity injection from shareholders or a new investor – will be required to cover a forecast funding gap in 2026, the agency believes. Latvia's government approved a potential €30 million short-term loan for the carrier last month. However, the loan still requires endorsement by the national parliament. The state owns around 88% of Air Baltic, while Deutsche Lufthansa holds a 10% stake. Fitch observes that political considerations and EU state-aid rules could limit the scope for timely state support. The agency has also cut the senior secured long-term rating on Air Baltic's €380 million bonds to 'CCC-' from 'B-'.

British Airways plans to cut services to the Middle East over the summer, with capacity reallocated to India. "Due to the ongoing situation in the Middle East, we have made further changes to our flying schedule to provide greater clarity for our customers," the carrier said on 9 April. "We are keeping the situation under constant review and are in direct contact with affected customers to offer them a range of options," it added. BA’s Dubai service will be reduced from three daily flights to one from 1 July, with a second daily service scheduled to resume in October. Services to Doha and Riyadh will be cut to once daily, with flights to Riyadh returning from mid-May. Tel Aviv will fall from twice daily to once daily from 1 July. Bahrain and Amman services will be suspended for the remainder of the summer season, with resumption planned for 25 October. Separately, BA will permanently suspend its Jeddah service from 24 April. With its Middle East schedule significantly slimmed down, BA will deploy some of the freed-up aircraft on routes to India. Prior to the latest outbreak of violence, a large number of passengers travelling between Europe and India had connected through Middle East hubs. Capacity increases include an additional daily flight to Bangalore during the summer season, bringing the total to 14 weekly services. Delhi will gain three additional weekly flights from mid-July until 20 August, taking the route to 14 weekly services. The route will also be upgauged from an Airbus A350 to a Boeing 777 from 1 June, adding 59 seats per flight. Mumbai will see an extra daily flight from 1 to 19 June, increasing capacity to 21 weekly services. BA will also upgauge its Hyderabad service from a Boeing 787 to a 777, adding 68 seats. In addition, BA will add an extra daily flight to Nairobi from 1 June until 24 October. BA’s expansion in India mirrors moves by Lufthansa Group, which has also added capacity to the subcontinent in response to the situation in the Middle East. On 31 March, the group said it would add seats to services serving Chennai, Delhi, Hyderabad and Bengaluru. Lufthansa Group has identified India as a key long-haul market, having signed a joint business agreement with Air India earlier this year. The German airline group has cited the "enormous potential" of the Indian aviation market, noting that routes between its European home markets and India are already its second most important premium long-haul market after the USA.

South African Airways chief executive John Lamola has resigned from his position effective from the end of the month. The Star Alliance carrier says it will be led by Matshela Seshibe, who currently leads subsidiary Air Chefs, until a permanent replacement can be found. Lamola took on the leadership of SAA in May 2022 as it was emerging from business rescue, a form of bankruptcy protection, and navigating the lingering effects of the Covid crisis. Under his stewardship, SAA focused on restoring operations and expanded its fleet from five to 19 aircraft while growing its route network from six to 17 destinations. That included the reintroduction of routes to international destinations such as Sao Paulo and Perth, alongside a strengthening of SAA's domestic presence. "The board and executive management remain firmly committed to ensuring leadership continuity and maintaining operational stability," says SAA. "Like many global airlines, SAA continues to contend with external pressures, including rising aviation fuel costs linked to geopolitical developments in the Middle East, which are impacting the broader industry." Lamola's departure follows the resignations in recent weeks of three SAA board members, citing various reasons.