Latvian Flag Carrier airBaltic Files For Chapter 11 Bankruptcy Protection

Key Points:

• Latvian flag carrier airBaltic has voluntarily filed for Chapter 11 bankruptcy protection in the U.S. to restructure its financial obligations while continuing normal operations, with an expected emergence by June 2027.
• The airline assures passengers that all flights are operating as scheduled, tickets remain valid, and refunds or claims will be handled per existing policies, requiring no action from travelers.
• airBaltic has secured EUR 350 million in debtor-in-possession financing to maintain liquidity during the restructuring, aiming to reduce debt and build a sustainable financial structure under court supervision.
• The airline plans to shrink its fleet from 54 to 36 Airbus A220-300 aircraft by the end of 2026, focusing on deepening market presence in Latvia and increasing year-round wet leasing to mitigate seasonal demand fluctuations.
• Challenges such as closed Russian airspace, rising fuel costs, and competition from ultra low-cost carriers have pressured airBaltic, prompting a strategic shift from aggressive expansion to financial discipline and operational sustainability.