Latvian airline AirBaltic has filed a voluntary Chapter 11 bankruptcy petition in New York, the state-controlled carrier announced Monday. Lufthansa holds a 10% stake in the airline.
The company said flight operations and all customer services would continue without interruption during the proceedings. Chapter 11 allows firms to reorganize their finances under court supervision while continuing normal business operations, with the aim of achieving a stronger, more sustainable capital structure.
To secure liquidity during the process, AirBaltic said it had arranged €350 million in new financing. The airline expects to complete the procedure by around June 2027.
Andrejs Martinovs, chairman of the board of directors, said the company had carefully reviewed its options. The proceeding provides a clear framework for reaching agreements with creditors, including aircraft lessors, under court supervision and with protection from creditor claims.
“The central priority is to keep flying and maintain Latvia’s connectivity,” Martinovs said. The goal is to conclude the process with a financially strengthened AirBaltic and significantly reduced debt, he added.
CEO Erno Hildén emphasized that passengers should notice no disruption. “We are flying, selling tickets and planning our future schedule,” Hildén said. “The procedure is not noticeable to customers.”
AirBaltic follows other airlines that have used the US Chapter 11 process for restructuring, including SAS, United Airlines and Delta Air Lines.
The airline operates a fleet that includes Airbus A220-300 aircraft.
