AirBaltic has filed for voluntary Chapter 11 protection in New York, launching a court-supervised restructuring centred on its all-Airbus A220 fleet. The Latvian carrier secured a €350 million debtor-in-possession financing commitment to maintain operations while it works through a heavy debt load, high fuel costs and pressure from a sector-wide shock linked to the Iran war. The process is designed to keep flights running while the company stabilises cash flow.
The airline operates about 54 A220-300 jets, and its restructuring plan contemplates a smaller fleet of 36 aircraft by the end of 2026. The filing also comes as airBaltic carries about $583 million in funded debt and finance-lease liabilities, alongside €106 million in payroll taxes and airline taxes and fees. Parts of the business plan can defer or cancel some aircraft and engine delivery obligations, easing near-term capital demands on the carrier and its suppliers.
Lenders behind the financing commitment include Strategic Value Partners, Barclays, Hayfin Capital Management, Morgan Stanley and Oaktree. AirBaltic had already been under liquidity strain as fuel prices climbed and bondholder pressure intensified, leaving limited room to manoeuvre without external support.