According to Bloomberg, the market value of airBaltic's €380 million bonds fell by approximately €0.16, reaching about 67 cents on Thursday. Fund managers referenced by the agency indicated that the airline is exposed to the risk of increasing fuel prices as it has hedged only 10 percent of its consumption. This limited exposure contrasts sharply with the approaches taken by other Latvian carriers like Ryanair and WizzAir, which have hedged 60 to 80 percent of their fuel price volatility.

Kaspars Subačus from Artea Asset Management highlighted that while many airlines will significantly feel the impact of rising aviation fuel prices, their risk will be much lower than that facing airBaltic, whose strategy leaves it vulnerable to market fluctuations. This discord in risk management strategies may have significant implications for airBaltic's financial stability and operational performance, especially with the backdrop of rising operational costs due to the ongoing geopolitical tensions that affect fuel prices.

As reported, airBaltic announced in May 2024 the issuance of secured bonds worth €340 million with an interest rate of 14.50% due in five years and three months. Out of the total bond issuance, €290 million worth of bonds were purchased. This financial maneuver highlights the airline's attempts to secure funding amid an unstable pricing environment, but the decline in bond value suggests that investor confidence may be waning unless the airline can effectively manage its fuel cost exposure moving forward.