Latvian carrier airBaltic has assured customers their flights will continue and tickets are still valid, after filing for bankruptcy protection in the US so it can restructure its debts.
The airline said it has voluntarily filed for protection under Chapter 11 of the US Bankruptcy Code in New York and has secured a commitment for €350 million in financing from a group of lenders to support operations during the restructuring process.
It blamed a combination of financial and geopolitical pressures for its difficulties, and told the bankruptcy court it had been experiencing ‘acute financial stress’.
It said the conflict between the US and Iran had caused jet fuel prices to double, creating the aviation industry’s most severe crisis since the COVID-19 pandemic.
AirBaltic stressed that flights and customer services are continuing as normal and that passengers can continue to book and travel as usual.
In a statement on its website, airBaltic said: “Flights and customer services continue as normal. Your ticket is valid. No action required.”
From the UK, airBaltic flies to Tallinn in Estonia, Kuusamo in Finland and Riga in Latvia, from London Gatwick.
The airline said it plans to use the restructuring to improve profitability by around €44m a year and will work with stakeholders to agree sustainable financial terms.
As part of the process, airBaltic intends to cancel or defer aircraft deliveries, including part of its order for 40 additional Airbus aircraft and further engine deliveries.
The carrier said it had already been in discussions with Airbus about postponing aircraft deliveries beyond this year.
According to court filings, airBaltic has around $583m in funded debt and finance lease liabilities, as well as €106m in payroll taxes, airline taxes and fees. The airline reported revenue of approximately €779m in 2025.
CEO Erno Hilden said the restructure is expected to be completed by June next year and airBaltic is discussing workforce reductions with unions representing is 3,000 workforce, as part of its restructuring plans.
He told Reuters: “I do think that the underlying business for airBaltic is a very healthy one. So after we really execute on our new business plan, I do see a bright future for the company.”
He added that one of the biggest operational changes during the restructuring would be a reduction in the airline’s wet-lease business, under which it provides aircraft and crews to other carriers.
