airBaltic Turns to Chapter 11 to Overhaul Debt Structure

Facing mounting financial pressures exacerbated by the conflict in Iran, airBaltic has secured U.S. court approval to initiate Chapter 11 bankruptcy proceedings. Prime Minister Andris Kulbergs confirmed the move, which allows the state-backed carrier to maintain its flight schedule while aggressively renegotiating terms with its creditors.

Editorial·September 16, 2026·reads: 1,122

airBaltic Turns to Chapter 11 to Overhaul Debt Structure

The airline is currently positioned to receive a €350 million ($404.1 million) financing package, pending final judicial sign-off. This capital infusion serves as the bedrock for a reorganization plan that targets completion by June 2027. Management intends to use these funds to restructure obligations owed to bondholders and aircraft lessors.

To ensure long-term viability, the company is pivoting toward a leaner operational model. This strategy involves scaling back the fleet and reducing overhead costs, a shift intended to align the carrier’s expenditures with its revised business trajectory.