airBaltic enters U.S. Chapter 11 to restructure

On Sept. 14, 2026, airBaltic voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code in New York as part of a court-supervised debt restructuring. The move places the Latvian state-majority carrier under U.S. bankruptcy court oversight while it works on a plan to reorganise its financial obligations. The Chapter 11 framework is intended to allow the airline to continue operating while it negotiates with creditors and seeks to stabilise its liquidity position.

The filing focuses on restructuring existing debt rather than an immediate liquidation of operations. By choosing a court-supervised process in New York, airBaltic aims to address its liabilities in an orderly way while maintaining its commercial activities. The company has framed the proceedings as a step to secure its long-term viability under challenging market conditions.

Alongside the Chapter 11 filing, airBaltic announced that it had secured a commitment for €350 million of debtor-in-possession financing. This funding is designed to support the airline’s operations during the restructuring period, providing working capital and helping to reassure customers and counterparties. Debtor-in-possession financing typically takes priority over existing debt, giving new lenders greater security as the process unfolds.

The committed financing comes from a group of lenders that includes Strategic Value Partners, Barclays (BARC.L), Hayfin Capital Management, Morgan Stanley (MS) and Oaktree Capital Management. By naming these institutions, airBaltic highlighted the breadth of financial backing it has lined up. The airline presented this package as a key tool to stabilise its liquidity while a longer-term capital and debt structure is negotiated.

airBaltic has told customers that its flights will continue to operate as scheduled throughout the Chapter 11 process. Tickets and reservations are stated to remain valid, and the airline has committed to maintaining its customer services without interruption. This messaging is aimed at ensuring that passengers can continue to book and travel with confidence during the restructuring period.

Operational continuity is central to the restructuring strategy, since maintaining revenue flows is important for the success of the court-supervised process. By keeping its schedule and services intact, airBaltic seeks to preserve its market position while it negotiates with creditors under the protection of the U.S. bankruptcy court.

airBaltic and reports on the filing have linked the decision to seek Chapter 11 protection to sharply higher jet fuel costs caused by the U.S.-Iran war. Jet fuel prices have doubled, adding significant cost pressure across the airline sector and weighing on airBaltic’s finances. This surge in a key operating expense has been cited as a factor contributing to the need for court-supervised restructuring.

The airline is majority owned by the Latvian government, which gives it a state-backed ownership structure as it navigates the Chapter 11 process. This ownership context sits alongside the new private financing commitment as airBaltic works on a longer-term solution to its debt burden. The combination of elevated fuel costs and the need to restructure liabilities frames the challenge the carrier now faces under U.S. court protection.