AirBaltic files for bankruptcy: What does it mean for Israeli passengers?

Latvia's national airline, AirBaltic, has filed for Chapter 11 bankruptcy protection in the US amid debts of hundreds of millions of dollars. The company emphasizes that flights will continue as usual, tickets remain valid, and it has secured new financing of €350 million to sustain operations during the restructuring, which is expected to be completed by June 2027.

Latvian airline AirBaltic, which recently resumed flights to Israel, has filed for Chapter 11 bankruptcy protection in the US. The company faces debts of hundreds of millions of dollars and significant financial pressure due to rising fuel costs following the war with Iran. Despite the proceedings, AirBaltic stresses that flights will continue as planned, existing tickets and bookings are valid, and new flights can still be booked. The company has secured a commitment for €350 million in new financing to sustain operations during the restructuring, expected to conclude by June 2027. AirBaltic operates around 50 Airbus A220-300 aircraft and is controlled by the Latvian government. As part of the restructuring, the company is expected to scale back some operations and defer future aircraft deliveries, including an order for 40 additional planes worth approximately $3.5 billion.