09/15/2026
airBaltic has filed for Chapter 11 bankruptcy protection in the United States, launching a court-supervised restructuring process aimed at reducing debt while maintaining normal operations. The Latvian carrier and certain subsidiaries submitted their filing to the U.S. Bankruptcy Court in New York and secured commitments for €350 million in debtor-in-possession financing, subject to court approval. The funding is intended to provide liquidity while the airline restructures its financial obligations and negotiates with creditors and lessors.
The airline emphasized that flights, ticket sales, reservations, refunds, vouchers, and customer services will continue without interruption throughout the process. Management stated that passengers should experience no significant changes as airBaltic pursues a reorganization designed to strengthen its financial position. The carrier expects to complete the Chapter 11 process by approximately June 2027 while continuing its day-to-day operations.
The filing follows mounting financial pressures, including substantial debt, aircraft lease liabilities, and liquidity challenges. Rising fuel costs and broader operational expenses added further strain to the airline’s finances. Prior to seeking Chapter 11 protection, airBaltic had pursued alternative financing measures and debt restructuring efforts, but ultimately opted for a larger court-supervised reorganization supported by new financing commitments.
As part of its revised business strategy, airBaltic plans to reduce and optimize its Airbus A220-300 fleet while concentrating on a more focused network structure centered on Riga. The restructuring is intended to create a financially stronger airline with lower obligations and improved long-term sustainability. Despite scaling back earlier expansion ambitions, airBaltic aims to emerge from the process as a leaner and more competitive carrier within the European aviation market.
Source: Airways Magazine