A European Airline Filed for Chapter 11, but Flights Are Still Operating

An airline recently filed for Chapter 11 bankruptcy, but travelers are being told not to change their plans quite yet.

Latvia’s national airline, airBaltic, filed for Chapter 11 in New York on Sept. 14. The company plans to reorganize its debts without shutting down.

Tickets and reservations are still valid, and flights continue to operate as scheduled. AirBaltic is also selling new tickets and planning flights for next summer.

However, major changes are happening behind the scenes. The airline plans to use fewer planes and expects the court process to continue until approximately June 2027.

You Don’t Need to Cancel Your Flight

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We’ve taken an important step to strengthen our financial position, supporting our broader plan to build a more efficient and stronger airline for the future. As part of this, the company has voluntarily initiated a Chapter 11 financial reorganisation in the United States – a court-supervised process that allows a company to strengthen its financial position and support its long-term development while continuing normal day-to-day operations.

Here’s what matters most to our passengers:
✅ All flights operating as scheduled
✅ You can continue to book and travel with us as usual
✅ Existing tickets and bookings remain valid
✅ No action needed on your part

Erno Hildén, President and CEO of airBaltic: “Our focus is on continuing to run the airline while implementing the changes set out in our new business plan. For our passengers, our operations continue as normal – the process does not affect their travel experience and is not noticeable to them – we are flying, selling tickets and planning our future schedule, with the same focus on safety and operational reliability. At the same time, we are taking the necessary steps to make airBaltic a more efficient and financially sustainable airline. This process allows us to continue that work while maintaining our day-to-day operations and serving our passengers and partners.”

Our operations continue unaffected and unchanged. Schedule and service stay exactly as before – delivering a safe and reliable experience for our passengers is always our top priority.

Full details: https://t.co/8KNirr0SZp

— airBaltic (@airBaltic) September 14, 2026

According to airBaltic, passengers with upcoming flights don’t need to take any action right now, as customer service will continue as usual and refunds and vouchers will still follow the airline’s existing policies.

Gift cards and credits connected to baggage or service claims are also still valid. AirBaltic has already released its winter schedule and a summer 2027 schedule. Next summer, it plans to fly directly to 57 destinations from Riga, 13 from Tallinn and eight from Vilnius.

Why a Latvian Airline Filed in New York

Filing for Chapter 11 gives a company time to work on its debts and contracts while continuing its daily operations. The company said it filed in New York because many of its creditors, aircraft leases and financial agreements are international, so Chapter 11 lets it deal with them through one court.

According to Reuters, the airline has about $583 million in debt and finance lease obligations. It also owes €106 million in payroll taxes, airline taxes and other fees.

AirBaltic was already struggling with aircraft engine shortages when fuel prices doubled during the war with Iran. The higher cost of keeping its planes in the air worsened its financial problems.

AirBaltic Plans to Use Fewer Planes

AirBaltic currently has 54 Airbus A220-300 planes. It plans to reduce the fleet to approximately 36 by the end of 2026.

Court documents show that the airline also wants to cancel or delay deliveries from a $3.5 billion order for 40 additional Airbus planes. Another $106.7 million in engine orders could be canceled or postponed.

The airline has secured a commitment for €350 million, or approximately $405 million, in new financing to help it continue operating. The bankruptcy court still needs to approve the money. AirBaltic hopes to finish the Chapter 11 process around June 2027.