airBaltic has secured U.S. court approval to proceed with its Chapter 11 restructuring in New York, allowing the Latvian carrier to continue normal flight operations while it works through a court-supervised debt process. The ruling clears the way for the airline to access financing linked to the restructuring, including a previously arranged €350 million facility, after its voluntary filing earlier this week.
The case was filed in New York on Monday and approved on Wednesday, with the process expected to run into 2027. airBaltic entered Chapter 11 to relieve pressure from a heavy debt burden and wider sector strain linked to the Iran war. The protection gives the airline breathing space from creditors while it keeps flying, serving customers and maintaining liquidity during the restructuring.
Latvia’s government remains closely involved as the carrier’s majority owner, and the next stage will involve talks with bondholders, lessors and other creditors. The financing package is central to the airline’s plan to preserve operations while it seeks a formal reorganisation structure that can later be approved by the court.