bankruptcy

A EUROPEAN airline that carries thousands of British passengers every week has filed for bankruptcy.

The travel company organises flights to the Baltic region from both London Gatwick and Aberdeen airport.

The national airline of Latvia, airBaltic, has had its bankruptcy protection approved in a move that hopes to cut mounting costs.

Around 4,000 British passengers fly on AirBaltic flights weekly, with the airline operating direct flights between London Gatwick and Riga, along with seasonal twice-weekly routes from Aberdeen to the capital.

The voluntary decision saw the carrier file for Chapter 11 bankruptcy protection in the United States, later securing $405million in financial commitments from various financial groups.

Despite the filing, experts have warned passengers not to interpret bankruptcy as cancellation and to wait before considering changing bookings.

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Anton Radchenko, CEO of AirAdvisor, said: “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.”

AirBaltic has confirmed that operations would continue as usual during the bankruptcy process, which is expected to finish by June 2027.

This includes scheduled flights, ticket sales, reservations and customer service, with all existing tickets, vouchers and credits remaining valid.

AirBaltic flies to over 70 destinations around the Baltics, including Europe, North Africa and the Middle East out of its main hub in Riga, Latvia.

The carrier is majority-owned by the Latvian government and has agreements with major international airlines such as Air France, KLM and Delta Airlines.

It currently operates a fleet of 54 aircraft, but announced a business plan in August to reduce its fleet to 36 planes to improve its financial stability.

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

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.”

Board of trustees recommending that the main building be closed immediately due to costs, US newspaper reports.

The John F Kennedy Center for the Performing Arts in Washington, DC, is on the brink of bankruptcy and could close as soon as Tuesday, The Washington Post has reported.

According to the report in the United States newspaper on Sunday, the institution’s board of trustees, of which President Donald Trump is the chairman, has argued that putting the president’s name on the facade could be the only way to avoid imminent and “certain fiscal collapse”.

The trustees also say the institution will not be able to pay employees or meet maintenance costs within a few weeks.

The assessment was set out in a 57-page report before a special meeting on Tuesday, when the Trump-led board is expected to consider the two main issues affecting the performing arts centre: A financial crisis and a physical one, as the building needs renovation.

The Post reported that board members are recommending that the main building be closed immediately due to costs.

The ⁠Post also said Trump ⁠would help the Kennedy Center if his involvement is acknowledged. The trustees’ report represents “a remarkable new phase in Trump’s takeover of the Kennedy ⁠Center, which has been engulfed by financial turmoil, leadership upheaval and litigation ⁠since he installed himself as chairman ⁠last year”, the paper said.

The Kennedy Center was named in honour of the late US president who championed civil rights before he was assassinated in 1963.

Trump placed himself as chairman of the Kennedy Centre shortly after beginning his second term last year, and in December his hand-picked board voted to rename it the “Trump-Kennedy” Centre, a move later blocked in court.

In response to Trump’s takeover, a host of artists have cancelled concerts, with US media reporting that ticket sales had fallen to their lowest levels since the COVID-19 pandemic.

The Post reported that the centre was expected to collect about $124m of the projected $220m in revenue that it had budgeted, “leaving a roughly $23 million deficit even after substantial spending cuts” this past fiscal year.

It added that a spokesperson for the centre blamed the problems on “financial mismanagement by previous leadership” and said Trump’s name had attracted new donors.

LIV Golf and its related entities have filed for Chapter 11 bankruptcy protection four years after the league’s debut as a heavy-spending, player-friendly alternative to the PGA Tour.

Rather than signal the end of LIV, though, the move is designed to help the league move into the future without Saudi funding.

“We are excited about what lies ahead and yet, there is still much to accomplish in the months ahead,” CEO Scott O’Neil said in a statement released by the league on Tuesday. “We believe deeply in LIV Golf’s future, the opportunity in front of us, and the people who will help us realize it. We will not rest until we deliver on LIV Golf’s full potential.”

After launching in June 2022, LIV once paid nine-figure signing bonuses to lure away top players from the PGA Tour. Spending had reached an estimated $6 billion by the time the Public Investment Fund of Saudi Arabia decided to end its financial support in April.

On Tuesday, LIV said it has entered a restructuring support agreement with BC Partners Advisors and voluntarily entered a court-supervised restructuring process under Chapter 11 in the United States Bankruptcy Court for the District of New Jersey.

Last month, O’Neil announced a long-term plan that would have the golfers become the majority equity holders in the league. In a letter to fans on Tuesday, he said that this week’s moves are steps toward the league’s long-term goals.

“Now it is time to enter the next phase of LIV Golf,” O’Neil said. “Today, we took an important step forward to get there. LIV Golf has entered a court-supervised restructuring process that provides us with the time and framework to address previous financial obligations and complete a transaction that will make the League’s next phase a reality. Put simply, this process is designed to build a stronger and more sustainable future for LIV Golf.”

O’Neal said the new league model will expand the field for events from 57 to 75 players, introduce a 54-hole cut and create Monday qualifiers. It will “be built around a sustainable business model and deeper alignment between players and the League, with team golf at its core,” he wrote.

“Players will have the opportunity to share directly in the value they help create, while teams will be positioned to grow into enduring global sports businesses. And fans will remain at the center of everything we do.”

In its bankruptcy filing, LIV listed estimated assests of between $100 million and $500 million and liabilities of between $500 million and $1 billion. Players Jon Rahm, Bryson DeChambeau, Dustin Johnson and Cameron Smith were listed as the four leading creditors.

The league ended its season in August. Four vendors already have filed lawsuits because they have not been paid.

The Associated Press contributed to this report.