Latvia's airBaltic files for US Chapter 11 protection as flights continue normally

Latvia's airBaltic has voluntarily initiated a US Chapter 11 process as it seeks to restructure its financial obligations. The airline said the move was prompted by acute financial stress linked to a combination of financial and geopolitical factors. It said flights and services are continuing without interruption.

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The company said on Monday that all flights are operating as scheduled and that tickets and reservations remain valid. It also said passengers can continue to book and travel as usual. In addition, airBaltic said existing bookings, employee wages and vendor payments would continue without interruption, while refunds, vouchers, gift cards and credits linked to baggage or service claims would still be honoured.

The airline is majority-owned by the Latvian government and operates direct flights from London Gatwick to Riga, as well as a seasonal twice-weekly route between Aberdeen and Riga. Data cited in the supporting material indicates those UK routes carry roughly 4,144 passengers each week. The company said it expects to complete the Chapter 11 process by around June 2027.

The filing places airBaltic among a small number of carriers facing pressure from wider economic and geopolitical disruption. Chapter 11 is a form of court-supervised restructuring under US bankruptcy law, rather than liquidation, and is designed to allow a business to keep operating while it reorganises its debts. For passengers, the immediate significance is that the airline says its network remains open and its travel commitments remain in place.

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The case also matters because airBaltic is a significant regional carrier for the Baltic states and a link between Latvia and the UK market. Its routes connect Riga with London and Aberdeen, and the airline's weekly passenger volume on those services suggests the filing could be watched closely by travellers and business customers. The involvement of the Latvian state as majority owner also gives the restructuring a public policy dimension.

The supporting material says airBaltic is the second carrier to file for bankruptcy in connection with financial difficulties linked to the US war on Iran, following the collapse of Spirit Airlines in May. That comparison underlines how external shocks can feed into airline balance sheets, especially for carriers operating in competitive short-haul markets. It also suggests the restructuring is taking place against a broader backdrop of pressure on aviation finances.

For now, the airline says normal operations will continue while the court process unfolds. What remains unclear is how the restructuring will affect the company's longer-term finances, ownership structure and route strategy. The key point to watch is whether airBaltic can complete the process on its stated timetable and maintain uninterrupted service throughout.

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