airBaltic’s bondholders have agreed to capitalize outstanding interest payments on the airline’s bonds. The decision was made at a meeting held on Monday, August 17th, as confirmed by the airline. Capitalizing the interest means the payments will be added to the principal amount of the bonds rather than paid out in cash. This move is aimed at bolstering airBaltic's financial position and aids in its ongoing recovery efforts. The airline did not disclose the total amount of interest being capitalized. This agreement represents a key step in the airline's restructuring process, providing it with crucial financial flexibility. It allows airBaltic to conserve cash and focus on operational recovery post-pandemic.