AirBaltic, the national airline of Latvia, has filed fo Chatper 11 protection in New York. The airline currently operates direct services between London Gatwick and Riga, as well as twice-weekly seasonal Aberdeen to Riga service
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AirBaltic has filed for bankruptcy, casting the airline’s future in serious doubt.
Latvia’s national airline filed for Chapter 11 protection in New York on 14 September as it seeks to restructure its debts.
AirBaltic currently operates direct services between London Gatwick and Riga, as well as twice-weekly seasonal Aberdeen to Riga service. These serve approximately 4,144 passengers each week, according to AirAdvisor.
Earlier this year, the airline announced it would launch flights from the UK to Lapland in December, offering five new routes to Kuusamo in Finnish Lapland from European airports, including services from London Gatwick and Manchester.
The airline plans to reduce its fleet from 54 aircraft to 36 by the end of 2026, while some staff members may also lose their jobs. CEO Erno Hilden has said that consultations are underway regarding workforce reductions, although no figure has been decided.
AirBaltic has faced a number of financial challenges since it took a €30 million (£26 million) state loan in April 2026, the company said in a statement, “including increased fuel costs arising from the crisis in the Middle East.”
Supervisory board chairman Andrejs Martinovs said in a written statement: “We have carefully assessed the restructuring options available to the company, with one priority in focus – to give airBaltic the best possible basis to continue operating and to build a sustainable financial structure. Under court supervision and with protection from creditor claims, this process provides a clear framework and timetable for reaching agreements with creditors, including aircraft lessors and other stakeholders. At the same time, it allows the company to continue operating.”
What does this mean for passengers?
If you have a flight booked with airBaltic, you shouldn’t panic. Passengers should not interpret the word ‘bankruptcy’ as meaning the airline has stopped flying and cancel valid bookings themselves – it has not cancelled any flights.
The airline has a commitment for €350 million (£300 million) in financing, subject to court approval, and insists that scheduled flights, bookings and customer services are continuing normally.
AirBaltic said flights would operate as scheduled during the court-supervised process, which it expects to finish by June next year.
Flights departing the UK fall under UK261. Riga to UK services are protected under EU passenger-rights rules because they depart from an EU airport. In either direction, a cancellation would normally allow passengers to choose between reimbursement and rerouting.
Anton Radchenko, Aviation Expert and CEO of AirAdvisor , said: “Chapter 11 is designed to give a company space to keep operating while it restructures, so I would not cancel a valid airBaltic booking when the airline is still flying and says the ticket remains valid. Cancelling voluntarily could leave the passenger subject to the ticket’s normal restrictions, whereas waiting for the airline’s decision preserves their statutory rights if the service is later changed or cancelled.
“I would use this moment to identify exactly what protects the booking. A direct flight is not usually ATOL protected, airline-failure insurance is not standard, and the practical fallback may depend on whether the passenger booked a genuine package, paid directly by credit card or can make a chargeback claim.
If airBaltic cancels while continuing to operate, passengers should request a refund or rerouting and the necessary care rather than accepting whichever option is presented first. Fixed compensation may also apply depending on the notice and reason, but if an airline ceases trading completely, possessing a legal claim does not guarantee immediate repayment, which is why the financial protection behind the booking matters.”