airBaltic Begins Chapter 11 Financial Restructuring Process
Latvia’s flag carrier airBaltic has officially initiated Chapter 11 financial restructuring proceedings in the United States amid financial difficulties.
The airline stressed that the process does not mean it is ceasing operations, but is intended to allow the company to restructure its debt while continuing to operate. All flights, ticket sales and passenger services will continue as normal.
According to airBaltic, the company has secured €350 million in debtor-in-possession (DIP) financing, subject to court approval. The funding will support salary payments, fuel purchases, aircraft leases and day-to-day operations throughout the restructuring process. The airline is also targeting approximately €44 million in annual financial improvements as part of the restructuring.
airBaltic’s financial difficulties deepened in 2026 amid higher jet fuel prices linked to conflicts in the Middle East, engine-related issues affecting its Airbus A220 fleet and a growing debt burden. The airline had previously sought €257 million in interim financing from bondholders, but after failing to reach an agreement with creditors, it proceeded with the Chapter 11 process.
Chapter 11 is a legal process under U.S. bankruptcy law that allows companies to restructure their debts without immediately ceasing operations. During the proceedings, airBaltic can continue operating while working under court supervision to negotiate a new repayment plan with creditors and restructure its finances.
