Another national airline files for Chapter 11 bankruptcy

AirBaltic, Latvia’s flag carrier, has formally entered a U.S. Chapter 11 bankruptcy process overseen by a federal court, a legal step that permits the airline to reorganize its debt while still operating flights and seeking to restructure its financial obligations. The move follows a surge in operational costs that Reuters links to the ongoing Iran war, which has eroded the carrier’s cash flow.

Earlier this week FlightGlobal reported that the airline examined multiple financing routes, from private equity to bridge loans, before deciding that Chapter 11 offered the quickest path to secure urgent funding. The filing adds AirBaltic to a short list of national airlines recently seeking bankruptcy protection, as noted by TheStreet. Creditors will await the court‑supervised restructuring plan that will outline repayment terms.

AirBaltic has pledged to keep its fleet in service throughout the case, and the bankruptcy court will set milestones for the plan’s approval. Observers can expect further filings as the court reviews the airline’s reorganization proposal.