Air Baltic’s restructuring has entered a critical phase as the Latvian carrier works through U.S. Chapter 11 protection in New York while depending on revised arrangements with Airbus and Lufthansa. The airline, based in Riga and operating an all-Airbus A220-300 fleet, has filed to keep flying during the process while seeking to renegotiate aircraft deliveries, engine commitments and wet-lease capacity linked to its commercial partner in Germany.
The carrier has secured debtor-in-possession financing to support operations and expects the court-supervised process to run until around June 2027. Lufthansa holds a 10% stake and remains an important wet-lease customer, with existing arrangements covering A220-300 capacity during peak periods. Air Baltic also faces decisions over roughly 40 outstanding Airbus aircraft and related Pratt & Whitney engines, making fleet terms central to the turnaround.
The restructuring comes as Air Baltic aims to reduce its fleet to 36 Airbus A220s by the end of 2026 while maintaining normal flights, ticket sales and customer service. The bankruptcy court has already granted initial approval for the company to continue operating and draw on the first tranche of financing, giving management room to negotiate with creditors, lenders and potential new equity backers.