• airBaltic has voluntarily initiated a Chapter 11 financial reorganisation process in the US as it seeks to address its financial position and key contractual issues.
• The airline has secured commitments for €350 million in debtor-in-possession financing from five international lenders, subject to US Court approval.
• President and CEO Erno Hildén said operations will continue as normal, with airBaltic currently estimating the process will take nine to 12 months.

airBaltic has voluntarily initiated a Chapter 11 financial reorganisation process in the US, with the airline expecting the process to take around nine to 12 months, according to President and CEO Erno Hildén.

In a post published on LinkedIn, Hildén said the process provides airBaltic with a structured framework to address its financial position and key contractual issues while continuing airline operations.

“We are taking another important step in putting airBaltic on a stronger footing for the future. Today, we have voluntarily initiated a Chapter 11 financial reorganisation process in the U.S. Court. This provides us with a highly structured and effective international framework to address our financial position and some key contractual issues while continuing to operate the airline. For us, this is an important tool for executing our business plan. We enter the process with commitments for EUR 350 million in new debtor-in-possession financing from five international lenders. Subject to customary U.S. Court approval, this financing, together with cash generated from our operations, is expected to provide sufficient liquidity to support airBaltic throughout the process. There is no strict timeline for Chapter 11, but our current estimate is 9-12 months,” said Hildén.

The carrier is entering the process with commitments for €350 million in new debtor-in-possession financing from five international lenders. Subject to US Court approval, airBaltic expects the financing, together with cash generated from operations, to provide sufficient liquidity throughout the process.

Hildén said airBaltic’s operations will continue as normal throughout the process, with flights operating and tickets remaining on sale. He said the restructuring would not affect travel plans or the customer experience. He also stressed that no action is required from employees, suppliers or partners. The airline will continue to meet its obligations to suppliers, service providers and other partners in the normal course of business.

“Chapter 11 is part of the broader work we are doing to build a stronger and more sustainable capital structure and strengthen the company for the long term,” Hildén said.

He added that airBaltic’s focus remains on operating safely and reliably while progressing with the financial reorganisation, and said the airline would continue to provide updates through its official channels.

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