Overview
- AirBaltic voluntarily filed for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York on Monday, Sept. 14, 2026, and says scheduled flights, bookings and customer services will continue under court supervision.
- The airline has a committed €350 million debtor‑in‑possession loan from a lender group that includes Strategic Value Partners, Barclays, Hayfin, Morgan Stanley and Oaktree, with the financing subject to court approval and priced at roughly SOFR+8% (about 12% today).
- Court filings disclose roughly $583 million in funded debt and finance lease liabilities plus about €106–€122 million in unpaid payroll taxes and airline fees that the Chapter 11 process is intended to renegotiate with creditors and lessors.
- The company’s restructuring plan calls for a sharp cut to its all‑Airbus A220 fleet—from 54 toward about 36 by the end of 2026—plus steps to defer new aircraft and engine deliveries and scale back its wet‑lease business.
- AirBaltic has opened consultations with labour unions on workforce adjustments, the Latvian government (about 88–89% owner) remains involved, and the airline aims to complete the Chapter 11 process around June–July 2027.