airBaltic has entered Chapter 11 restructuring in the U.S. Bankruptcy Court for the Southern District of New York. The Latvian carrier says operations continue normally: flights remain scheduled, tickets valid and no special action is required from passengers.
€350 million planned to support operations
airBaltic says it secured commitments for €350 million in debtor-in-possession financing, subject to court approval. The funding is intended to support fuel, maintenance, payroll and airport expenses during restructuring.
The airline has reported about $583 million in financial debt and lease obligations, plus roughly €106 million in taxes and charges.
Fleet and network changes are expected
The restructuring plan includes cost reductions and fleet adjustments. airBaltic may defer or cancel some Airbus A220 deliveries and reduce wet-lease activity for other airlines. The carrier says it wants to refocus more tightly on Riga and its Baltic markets.
Court grants access to the first €140 million
Update, September 16: the U.S. court approved airBaltic’s initial requests and granted interim access to the DIP financing. The airline can immediately draw €140 million of the planned €350 million, allowing it to keep flying, pay staff, honor bookings and meet certain day-to-day expenses.
The approval is an important step but does not end the restructuring. Some bondholders have raised limited objections to elements of the financing terms, and negotiations continue under court supervision.
No immediate shutdown of flights
Chapter 11 does not mean operations have stopped. airBaltic continues selling tickets and operating its network. Passengers should nevertheless monitor schedules because future fleet, network and staffing adjustments could affect some services.
Sources
airBaltic; Reuters; U.S. Bankruptcy Court for the Southern District of New York.
Why the financing matters
Fresh liquidity gives an airline under restructuring more time to stabilize operations, renegotiate obligations and protect the network. It does not remove the underlying financial pressure, but it can reduce the immediate risk of operational disruption.
Related: airBaltic files for Chapter 11 to restructure debt, the earlier stage of the restructuring process.
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