Air Baltic has warned that it operates with "constrained liquidity" while it evaluates options with the Latvian government and external advisers to secure its "long-term financial sustainability". During an earnings call on 13 May, Air Baltic chief Erno Hilden said the state carrier "continues to operate with constrained liquidity while remaining in compliance with all financial covenants". It has secured a €30 million ($35 million) loan from the Latvian government to provide "temporary liquidity support" and engaged "external financial advisers to support the development of a new strategic business plan to evaluate the group's capital structure and assess strategic alternatives aimed at ensuring long-term financial sustainability", he says. Last month, Air Baltic disclosed its appointment of Seabury Securities as strategic and financial adviser. "We remain in active dialogue with key stakeholders, including the Republic of Latvia, regarding the most appropriate path forward," Hilden says, adding: "Several options are under consideration, and the management is committed to pursuing a solution that supports continuing operations and preserves value for all stakeholders." Air Baltic has reported negative equity of €249 million as of 31 March 2026, down from negative €183 million at the end of last year. The carrier says that its liabilities exceeded its assets by €415 million at the end of March. Its total cash reserves stood at €32.9 million at that point. During 2026's first quarter, Air Baltic's revenue grew 12.3% year on year to €149 million, and the airline swung to an EBITDAR profit of €7 million, from a €4.3 million loss last year. But its net loss more than doubled to €70 million, from €29 million. The increase in the net loss was largely a result of exchange-rate effects on US dollar-denominated leasing liabilities, Air Baltic finance chief Vitolds Jakovlevs said during the earnings call. The carrier's financial situation, uncertainty regarding capital structure measures and dependency on shareholder support indicate "material uncertainties that may cast significant doubt on the group's ability to continue as a going concern", Air Baltic states.

Allegiant Air has completed its acquisition of Sun Country Airlines, three months after the two US carriers agreed to combine in a cash and stock deal valued at $1.5 billion. The combined company will be headquartered in Las Vegas, where Allegiant is based, and maintain a presence in Minneapolis-St Paul, which has been home to Sun Country. In April, the US Department of Transportation approved the carriers' plan to operate separately under common ownership after the closing of their merger deal, while advancing toward a single operating certificate. In the near term, the airlines will operate as separate carriers using their respective brands, Allegiant says. The transaction closed following receipt of required regulatory approvals and shareholder approval. "Today marks a defining moment in Allegiant's history as we officially join forces with Sun Country to create the leading leisure-focused airline in the United States," Allegiant chief executive Gregory Anderson states. He adds that the carriers have a combined fleet of 195 aircraft serving nearly 175 cities. The combined company intends to expand "access to affordable, reliable, and convenient travel for the communities that have long been the foundation of our business, while offering customers broader reach and more destinations", Anderson says. Anderson will serve as the combined company's chief executive. Allegiant chief financial officer Robert Neal will continue in that role. Joining the board of the combined company are Jude Bricker, who served as Sun Country chief executive, and Jennifer Vogel and Thomas Kennedy, who until the closing of the deal had been Sun Country board members.

Lufthansa intends to exercise its option to acquire a majority stake in ITA Airways. The group will increase its shareholding in the Italian carrier from 41% to 90% "as early as" June, says chief executive Carsten Spohr. The transaction is set to close at the previously agreed purchase price of €325 million ($382 million). Lufthansa notes that the stake increase is subject to regulatory approvals, primarily from the European Commission and the US Department of Justice and foresees completion in the first quarter of 2027. Thereafter, ITA will be "fully integrated into the Lufthansa Group, both organizationally and financially", adds the group. The additional stake's seller is the Italian ministry of economy and finance. Lufthansa says the ministry will continue to hold the remaining 10% of shares in ITA. From 2028, this tranche may also be acquired by Lufthansa, it notes. "Following the acquisition of the first 41% stake in ITA Airways last year, we promised the fastest airline integration in our history," states Spohr. "We aimed to complete all major integration steps into the Lufthansa Group within just 18 months. "We have not only kept this promise. We were even faster: all customer-facing interfaces are already integrated today – with the exception of North Atlantic flights, where, as is well known, regulatory approval for our merger is still pending." He says Lufthansa is meanwhile "progressing" in the cargo business. Since last year, Lufthansa Cargo has been marketing ITA's cargo capacity, which corresponds to the additional capacity of three Boeing 777 Freighters.