AirBaltic Files for Chapter 11 Bankruptcy Protection in US
Latvian national airline AirBaltic has filed for Chapter 11 bankruptcy protection in the United States, seeking to reorganize its debts totaling hundreds of millions of dollars. The airline, which recently resumed flights to Israel, is facing significant financial pressure amidst global aviation industry turmoil.
Despite the filing, AirBaltic assures passengers that all existing tickets and bookings remain valid, and flights will continue to operate as scheduled. The company has secured a commitment for new financing of 350 million euros to support its operations during the restructuring process, which it expects to complete by June 2027.
The financial strain is attributed to substantial debts and increasing operational costs, particularly the rise in fuel prices influenced by geopolitical events. As part of its reorganization, AirBaltic plans to scale back some operations and potentially defer future aircraft deliveries. The airline operates a fleet of approximately 50 Airbus A220-300 aircraft and has a significant order for 40 additional planes.
For Israeli travelers, AirBaltic emphasizes that there are currently no changes to existing reservations. Customer service, refunds, vouchers, and loyalty point redemptions are expected to continue under the company's existing policies. New flight bookings can also be made as usual.
