Factbox-What to know about airBaltic as Latvia's flag carrier files for Chapter 11

Sept 14 (Reuters) - Latvia's airBaltic said on Monday it had voluntarily filed for Chapter 11 bankruptcy in the U.S. as it seeks to cut its mounting debt and survive a sector-wide crisis brought on by the Iran war.

AirBaltic is the second airline casualty linked to the war after Spirit Airlines collapsed in May.

Below are some details about the Latvian flag carrier and its financial troubles.

WHO OWNS AIRBALTIC?

The Latvian government owns an 88.37% majority in airBaltic, while Germany's Lufthansa holds 10%.

AirBaltic was established in Riga in August 1995 as a joint venture between the government and Scandinavian airline SAS, with respective stakes of 51% and 28.5%, after Latvia's former flag carrier Latavio collapsed.

SAS sold its stake in 2009.

HOW BIG IS AIRBALTIC?

AirBaltic is the largest airline in the Baltic states and operates scheduled passenger flights across Europe and beyond.

It carried 5.2 million passengers in 2025 and employs more than 3,000 people. It generated revenue of €779.3 million ($899 million) and a net loss of €44.3 million last year.

WHERE DOES AIRBALTIC OPERATE?

The airline has sought to establish itself as the dominant carrier in the Baltics, opening a hub in Vilnius, Lithuania, in 2004 and later developing bases in Tallinn, Estonia, and other European cities.

AirBaltic flies to more than 70 destinations, using Riga as a transit hub linking northern and eastern Europe with the rest of the continent, along with destinations in North Africa and the Middle East.

In March, it suspended direct flights to Dubai until October due to the war.

WHAT JETS DOES AIRBALTIC FLY? 

The airline, which began operations with a Saab turboprop plane, today operates an all-Airbus A220-300 fleet of 54 aircraft. It also leases aircraft and crews to other airlines during parts of the year.

The company said in August it aimed to reduce its fleet to 36 aircraft by the end of 2026, with a target of about 40 by 2031, down from a previous goal of 100 aircraft.

WHY DID AIRBALTIC RUN INTO TROUBLE?

In March, airBaltic warned of liquidity pressures after it was exposed to sharp rises in oil prices because it had not hedged its jet fuel needs.

The airline proposed raising up to €257 million through new super-senior debt. The proposal, which would have subordinated existing bondholders' claims, added to investor concerns over credit risk and caused the yield on its €380 million bonds due in 2029 to surge.

The Latvian government backed the airline with a €30 million state loan in April, but stopped short of pledging further support. Analysts said the European Union's state aid rules and political considerations made additional government help more difficult.

WHAT DOES CHAPTER 11 MEAN FOR AIRBALTIC?

Chapter 11 allows companies to continue operating while restructuring their debt under court supervision.

AirBaltic said flights, ticket sales and customer service would continue as normal during the process. It has secured a commitment for €350 million in debtor-in-possession financing from a group of lenders, subject to court approval.

The airline expects to complete the restructuring around June 2027.

($1 = 0.8669 euros)

(Reporting by Gianluca Lo Nostro and Basile Day in Gdansk; Editing by Milla Nissi-Prussak)