What happened
airBaltic has entered U.S. Chapter 11 with 350 million euros of committed debtor-in-possession financing and says it will keep operating through a court process it expects to finish by June 2027. The commitment still needs court approval and is reported to carry interest of about 12%.
The carrier's 54 Airbus A220s were sized for connecting flows that collapsed after Russia invaded Ukraine, well above the 30 aircraft the Latvian prime minister said would cover the Baltic market. Wet-lease flying for Lufthansa Group brought revenue without solving the surplus. Lufthansa holds a 10% minority stake via convertible shares, and nothing indicates a rescue or purchase. The case could dilute that holding.
Booked airBaltic flights are still operating and existing tickets remain valid. Restructuring may later shrink the A220 fleet and network. Do nothing with current airBaltic bookings; keep flying as ticketed and watch the court process for later schedule or fleet changes.
- Numbers
- 350 million EUR: debtor-in-possession financing commitment
- $405 million: debtor-in-possession financing commitment
- 12%: reported DIP financing interest rate
- $583 million: funded debt and aircraft lease obligations
- 106 million EUR: unpaid payroll taxes, airline taxes, and fees
- 257 million EUR: failed pre-filing senior debt raise
- 25%: interest rate on the failed senior debt proposal
- 70%: share of outstanding debt whose bondholders preferred liquidation
- 54 aircraft: current Airbus A220 fleet
- 100 aircraft: planned fleet size by 2030
- 30 aircraft: fleet size the Latvian prime minister said would suffice for the Baltic market
- 10%: Lufthansa minority stake
- 44 million EUR: targeted annual profit improvements from restructuring
- Where
- Riga, Latvia
- Takeaway
- Do nothing with current airBaltic bookings; keep flying as ticketed and watch the court process for later schedule or fleet changes.