- AirBaltic has filed for Chapter 11 bankruptcy protection
- Operations continue as normal during proceedings
- The carrier secured €350 million in DIP financing
- The fleet will shrink from 54 to roughly 36 aircraft by the end of 2026
- Restructuring is expected to complete by June 2027
AirBaltic has filed for Chapter 11 bankruptcy protection before the United States Bankruptcy Court for the Southern District of New York. The company confirmed that all operations will continue as normal while the proceedings last. The filing was revealed on 14 September 2026.
The carrier stated that its liquidity position deteriorated after its €30 million state loan in April 2026 partly due to additional challenges, including increased fuel costs arising from the crisis in the Middle East. The carrier announced its reorganisation after it concluded that previously announced funding plans were unfavourable. The initial plans concerned AirBaltic’s emergency financing in the amount of €257 million, which would come with a 25pc interest rate on newly issued bonds. The funding proposal was backed by London-based Polus Capital Management and Israel’s Klirmark Capital.
AirBaltic has secured new financial backing in the amount of €350 million. The DIP proposal is backed by Strategic Value Partners and funded by Barclays, Hayfin Capital Management, Morgan Stanley and Oaktree Capital Management. The financing comes with a Secured Overnight Financing Rate of plus 8pc, approximately 12pc. The funds will be distributed to all three companies undergoing Chapter 11. AirBaltic expects to complete the court-supervised restructuring process by June 2027. The Latvian state remains the majority shareholder with an 88.37pc stake, and Lufthansa Group holds a 10pc minority holding.
Andrejs Martinovs shared “We have carefully assessed the restructuring options available to the company, with one priority in focus – to give AirBaltic the best possible basis to continue operating and to build a sustainable financial structure.”
