airBaltic Files for Chapter 11 Bankruptcy Protection

Latvian national airline airBaltic has announced it has voluntarily filed for Chapter 11 bankruptcy protection in the United States. The filing aims to restructure its financial obligations while maintaining regular operations.

airBaltic expects to emerge from Chapter 11 by June 2027. During this period, all flights are scheduled to operate as normal, and tickets, reservations, refunds, gift cards, and credits related to baggage or service claims will continue to be handled according to existing policies. Passengers with upcoming travel plans do not need to take any action.

To support operations throughout the Chapter 11 process, airBaltic has secured EUR 350 million in new debtor-in-possession financing.

The airline’s financial challenges have been exacerbated by increased fuel costs and the closure of Russian airspace to European Union airlines, which has significantly limited its potential route network. airBaltic had previously planned to expand its fleet to 100 Airbus A220-300s. However, its revised strategy involves reducing its current fleet of 54 aircraft to 36 by the end of 2026, with a gradual increase to approximately 40 aircraft by 2031.

While airBaltic will largely maintain its scheduled capacity, available seat kilometres are projected to decline from 9.6 billion in 2026 to 8.7 billion in 2027, before growing to 10.5 billion by 2031. The airline will continue to focus its network on Latvia, deepening its presence in existing markets by increasing frequencies rather than broad expansion. It also plans to increasingly focus on year-round deployment for its wet leasing strategy to mitigate seasonal demand issues.

Source: AirBaltic