TLDR
- Latvia’s airBaltic has filed for Chapter 11 bankruptcy protection in New York
- The filing is part of a financial restructuring to reduce debt
- Flights will continue as normal and tickets remain valid
- The airline has secured €350 million in debtor-in-possession financing
- Lenders include Barclays, Morgan Stanley, and Oaktree Capital Management
AirBaltic, Latvia’s national airline, filed for Chapter 11 bankruptcy protection in New York on Monday as part of a plan to restructure its finances and cut its debt load.
We've taken an important step to strengthen our financial position, supporting our broader plan to build a more efficient and stronger airline for the future. As part of this, the company has voluntarily initiated a Chapter 11 financial reorganisation in the United States – a… pic.twitter.com/KisqEDmkSZ
— airBaltic (@airBaltic) September 14, 2026
The filing was made under the US Bankruptcy Code. The Latvian government, which holds a majority stake in the airline, is involved in the process.
The airline was quick to reassure passengers that operations will not be disrupted. Flights will run as scheduled, and all tickets and reservations will remain valid during the court process.
Customer services will also continue without interruption, the company said in a statement.
Financing Secured
AirBaltic has lined up €350 million, roughly $405 million, in debtor-in-possession financing to keep the business running while restructuring takes place.
Debtor-in-possession financing is a type of funding available to companies that have filed for bankruptcy. It allows them to stay operational while they work through the legal process.
The financing comes from a group of well-known lenders. Strategic Value Partners, Barclays, Hayfin Capital Management, Morgan Stanley, and Oaktree Capital Management are all part of the lending group.
This level of financial backing from major institutions suggests lenders see value in the airline continuing to operate through the restructuring.
What Chapter 11 Means
Chapter 11 is a form of US bankruptcy law that allows a company to keep running while it reorganizes its debts. It is commonly used by airlines and other large businesses.
Unlike a full liquidation, Chapter 11 is designed to give a company breathing room to restructure. The goal is usually to emerge as a leaner, financially healthier business.
AirBaltic has not disclosed the full details of its debt obligations at this stage. The court-supervised process will likely involve negotiations with creditors.
The airline operates routes across Europe and beyond. It has been expanding its fleet in recent years with Airbus A220 aircraft.
The Latvian government’s majority stake adds a political dimension to the restructuring. State-owned or state-backed airlines often face additional scrutiny during financial difficulties.
AirBaltic has not named a target date for emerging from bankruptcy protection. Such timelines can vary widely depending on the complexity of negotiations.
The filing was made in New York, which is a common jurisdiction for international companies seeking Chapter 11 protection due to its established legal framework.
As of Monday, the airline confirmed it is business as usual for passengers, with no cancellations or service changes expected as a direct result of the filing.
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