Air Baltic files for Chapter 11 protection in the US

Air Baltic has filed for voluntary Chapter 11 bankruptcy protection in the United States, the Latvian national airline's most drastic step yet after months of financial strain. The filing lets the carrier rework its debts and other obligations under court supervision and negotiate fresh terms with creditors and leasing companies. Flights continue in the meantime.

Passengers should see no immediate change. Air Baltic says all flights will operate as scheduled, tickets and reservations already bought remain valid, and the airline is still selling new ones. It is also planning future schedules, though 18 routes are set to be dropped under the current plan. The proceedings are expected to wrap up around June 2027.

Before presenting a new business plan in August, the airline had already returned aircraft ahead of schedule and abandoned its major growth plans. Even then, according to the company, it was clear that without fresh money the situation was not sustainable.

To fund operations until the case concludes, Air Baltic has secured a commitment for 350 million euros. Combined with revenue from ongoing business, that is meant to give the carrier enough cash to keep flying. The financing still requires approval from the relevant court.

The money is not cheap: Air Baltic puts the total interest rate at around twelve percent.