The United States Bankruptcy Court for the Southern District of New York has approved airBaltic’s first-day relief request following the airline’s voluntary initiation of Chapter 11 proceedings. The court approved the announced EUR350 million euro (USD404 million) debtor-in-possession (DIP) financing proposal on an interim basis.
As a result, airBaltic will immediately gain access to EUR140 million (USD161.5 million), the first tranche of its financing facility.
Additionally, it said in a statement that it will be able to continue operations without any disruptions, pay employee wages, honour existing obligations to customers, honour obligations to critical supplies, and pay suppliers and vendors on normal terms for goods and services delivered on or after September 14, 2026, as well as pay taxes, insurance premiums, and regulatory fees as normal.
In its initial filing, airBaltic listed Pratt & Whitney as its largest unsecured debtor (with a USD66.5 million claim), followed by numerous Latvian state enterprises. The second-largest item on the list is an unsecured claim for the European Union's ETS scheme payments valued at USD42.4 million. All operators reporting under EU ETS must surrender their 2025 allowances by September 30, 2026.
airBaltic debtors have a total of approximately USD583 million in funded debt and finance lease liabilities, the carrier said.
Furthermore, airBaltic said it was in discussions with Airbus to cancel or defer outstanding deliveries on a USD3.5 billion order for forty additional aircraft, and it was looking into a similar arrangement with Pratt & Whitney regarding USD106.7 million-worth of additional aircraft engines.
The Latvian carrier is looking to downsize its fleet to thirty-six aircraft by the end of the year. It currently operates fifty-four A220-300s and has another forty on order.
