AirBaltic has filed for Chapter 11 bankruptcy protection in the United States as it seeks to reorganise its finances, but says flights and customer services will continue as normal.
The Latvian flag carrier and some of its subsidiaries have started proceedings in the US Bankruptcy Court for the Southern District of New York.
Chapter 11 allows a company to continue operating while it restructures its debts under court supervision.
AirBaltic said all scheduled flights will continue, while existing tickets and reservations remain valid. Passengers with upcoming travel do not need to take any action.
The airline has also secured a commitment for €350m in new financing to support the business during the restructuring.
Known as debtor-in-possession, or DIP, financing, the funding is specifically designed to provide companies with cash while they go through a Chapter 11 process. It remains subject to court approval.
AirBaltic said the new financing, together with money generated from its normal operations, should provide enough liquidity to keep the airline running during the restructuring.
Erno Hildén, President and CEO of airBaltic, said: “Our focus is on continuing to run the airline while implementing the changes set out in our new business plan.”
He said the process would help make airBaltic “a more efficient and financially sustainable airline”.
The restructuring will also allow airBaltic to negotiate with creditors, including aircraft leasing companies, while receiving protection from some creditor claims.
The airline’s existing management will remain in place throughout the process.
Chapter 11 has previously been used by several major airlines, including SAS, GOL, United Airlines, Delta Air Lines and American Airlines, allowing them to continue flying while restructuring their finances.
AirBaltic expects to complete the process by around June 2027.
