AirBaltic files for Chapter 11 bankruptcy protection in the US
Latvia's flag carrier airBaltic has applied for Chapter 11 bankruptcy protection in the United States, seeking to restructure its finances while continuing scheduled flights. The airline had recently announced it would cut its fleet by roughly a third.
airBaltic has filed for Chapter 11 bankruptcy protection in the United States. The Latvian flag carrier says it wants to restructure its finances while keeping scheduled flights in the air, and expects them to run as normal during the process.
Lufthansa holds a minority stake in the airline. Court filings state that airBaltic sold its remaining fuel hedges in March to avoid breaching liquidity requirements, leaving much of its fuel needs for the rest of 2026 exposed to market prices. Those prices later rose sharply.
The filing follows an announcement that the carrier would shrink its fleet by roughly a third. AirBaltic has long carried passengers between the Baltics, Russia and Western Europe through its base in Riga, and lost several profitable routes after Russia's invasion of Ukraine.
Chapter 11 gives the airline room to restructure while it continues to fly, though it will need to convince stakeholders to renegotiate contracts. The source does not detail further terms of the restructuring.
Sources
- flightradar24.comAirBaltic Has Filed For Chapter 11. Here’s What Happens Now