Another national airline files for Chapter 11 bankruptcy

AirBaltic, Latvia’s national carrier, has filed for Chapter 11 bankruptcy protection in New York on Sept. 14, citing acute financial stress driven by financial and geopolitical factors. The airline secured more than €257 million in short-term funding in early September but said it still couldn’t raise enough financing quickly enough to meet interest payment deadlines. The bankruptcy process is expected to last until June 2027 and provides temporary relief from creditors while AirBaltic obtains €350 million in debtor-in-possession financing from lenders including Strategic Value Partners, Barclays, and Morgan Stanley, at a Secured Overnight Financing Rate of 8%. The carrier, which serves more than 80 destinations across Europe and the Middle East, is also seeking to reduce its fleet of 50 Airbus A220-300 aircraft and restructure its debt. AirBaltic said flights will continue as scheduled, with reservations and ticket sales unaffected.