The national airline of Latvia is shrinking. airBaltic said it plans to cut between 500 and 700 jobs at its bases in Riga, Vilnius and Tallinn, Aerospace Global News reported Tuesday.

The airline has about 3,000 workers. It said the final number of cuts is not set yet and could change as it talks with unions. It is also discussing shorter workloads for pilots and cabin crew.

airBaltic said the cuts would make sure the "company's structure and cost base are aligned with the future scale of the carrier." It expects to finish its new structure by mid-October.

CEO Erno Hildén called it a "sensitive process." He said, "No final decisions have been made regarding individual employees."

Union leaders have raised concerns about the timing and approach of the notices, LatestLY reported.

What went wrong? The airline was hit hard by the jump in jet fuel prices after the Iran conflict began, because it had not locked in enough fuel at fixed prices, Aerospace Global News said. It was also carrying heavy debt and aircraft lease costs.

airBaltic filed for Chapter 11 bankruptcy in New York last month. Chapter 11 lets a company keep operating while it reworks its debts. The airline has a commitment for 350 million euros in new financing to keep running. It won approval to tap 140 million euros of that, LatestLY reported, citing Reuters.

The carrier is also downsizing its fleet. It dropped a plan to grow to 100 Airbus A220 jets. It now plans to cut from 54 planes to about 36 by the end of 2026, and to reach only about 40 by 2031.

Some background: In April, Latvia's government lent the airline 30 million euros. European Union rules on state aid limited further help.

For travelers, flights continue. "All scheduled flights are operating according to plan," the airline said, and tickets remain valid.

What we know: airBaltic plans 500 to 700 job cuts and a smaller fleet.
What we don't: The final number of jobs lost.