Overview
- Air Baltic filed a voluntary Chapter 11 petition in the United States on Monday and said its flight schedules will continue without disruption.
- The airline secured a binding €350 million debtor‑in‑possession financing package at about a 12 percent interest rate to preserve liquidity for the restructuring.
- Latvia remains the dominant owner with more than 88 percent of shares and officials are widely expected to underwrite a restart by injecting capital during the court process.
- Company executives and coverage point to years of aggressive expansion, heavy reliance on wet‑leasing, rising fuel costs and pandemic and war shocks as the causes of unsustainable debt.
- The Chapter 11 route lets Air Baltic keep operating while negotiating with creditors and partners and the outcome is likely to reshape minority stakes such as Lufthansa’s 10 percent holding.