AirBaltic files for bankruptcy protection in the USA

The airline wants to reposition itself financially under court supervision. There should be no changes for passengers at the airline, which also flies for other companies.

Air Baltic: The airline has financial problems. Photo: Bloomberg

Berlin. The Latvian airline and Lufthansa holding AirBaltic has applied for creditor protection in the USA. The majority-owned airline, in which Lufthansa holds ten percent, announced on Monday that the company had voluntarily filed an application under Chapter 11 of US bankruptcy law with a court in New York. Flight operations and all customer services continued without restrictions.

A Chapter 11 proceeding allows companies to reorganize their finances under court supervision while continuing operations. The aim is to achieve a stronger and more sustainable capital structure, explained Air Baltic. To secure liquidity during the process, the airline has secured new financing of 350 million euros.

The available options have been carefully examined, said the chairman of the supervisory board, Andrejs Martinovs. The process offers a clear framework for agreements with creditors such as aircraft lessors, under court supervision and with protection from creditor claims. “The key priority is to continue flying and maintain Latvia’s connectivity,” explained Martinovs. The aim is to complete the process with a financially strengthened AirBaltic and a significantly reduced debt burden.

Company boss Erno Hildén also emphasized that operations would continue as normal for passengers. “We fly, sell tickets and plan our future flight schedule,” he said. The process is not noticeable for customers.

With this step, Air Baltic follows other airlines such as SAS, United Airlines and Delta Air Lines, which have also used the US process for their restructuring in the past. The company expects to complete the process by approximately June 2027.

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