BY Fraser Tennant
Latvia’s airBaltic, and certain of its subsidiaries, has filed for Chapter 11 protection under Chapter 11 of the US Bankruptcy Code, as it seeks to restructure its debt and survive a deepening sector-wide crisis brought on by the Iran war.
Relief requested by the airline to continue operating normally throughout the Chapter 11 process has been granted approval by the US Bankruptcy Court for the Southern District of New York.
The court has also approved the company’s debtor in possession (DIP) financing on an interim basis, authorising airBaltic to immediately access an initial tranche of €140m of a previously agreed €350m financing facility.
The financing is committed in tranches, with further amounts available as the restructuring progresses, subject to the terms of the financing and further court approval where applicable.
With DIP financing approved, airBaltic will continue its financial reorganisation under the supervision of the US Court and discussions with creditors and other stakeholders, with the objective to establish a more sustainable capital structure and competitive cost base.
“The court’s decisions are an important first step in our financial reorganisation, allowing us to continue operating while moving forward with the restructuring,” said Erno Hildén, president and chief executive of airBaltic. “The approval of our DIP financing provides additional financial stability as we work to build a stronger and more sustainable airBaltic.”
Founded in 1995, airBaltic is the national airline of Latvia and the leading carrier in the Baltic States. The airline operates a modern and one of Europe’s youngest fleets of Airbus A220-300 aircraft. In 2025, airBaltic became the first European airline to introduce free high-speed SpaceX Starlink internet onboard its flights.
Flights and services are expected to continue without interruption throughout the Chapter 11 process. All flights will operate as scheduled, tickets and reservations remain valid, and passengers can continue to book and travel as usual.
“Our aim is to complete the process with a financially stronger airBaltic and a substantially reduced level of obligations that the company can sustainably manage over the long term,” said Andrejs Martinovs, chairman of the supervisory board of airBaltic. “We have a strong management team and experienced advisers with hands-on experience of implementing Chapter 11 processes.”
News: AirBaltic Has Filed For Chapter 11. Here’s What Happens Now