EU airline with English and Scottish routes files for bankruptcy | Travel News | Travel

AirBaltic has filed for bankruptcy protection as it seeks to restructure its debts, but says flights are continuing as scheduled.

Latvia’s flag carrier filed for Chapter 11 protection in New York on 14 September. The process allows it to keep operating while working towards agreements with creditors under court supervision.

The airline runs direct flights between London Gatwick and Riga, as well as a twice-weekly seasonal service between Aberdeen and the Latvian capital. Together, these services carry around 4,144 passengers a week, according to AirAdvisor.

Earlier this year, AirBaltic announced five new routes from European airports to Kuusamo in Finnish Lapland, due to launch in December. They include services from London Gatwick and Manchester.

The carrier plans to reduce its fleet from 54 aircraft to 36 by the end of 2026. Some staff could also face redundancy, with chief executive Erno Hilden saying consultations over job cuts are ongoing but no figure has been agreed.

AirBaltic said it had faced a series of financial difficulties since securing a €30 million (£26 million) state loan in April 2026, “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?

Passengers with AirBaltic bookings should not assume bankruptcy protection means the airline has stopped flying. No flights have been cancelled, and cancelling a booking yourself could leave you subject to the ticket’s usual restrictions.

The carrier has secured a commitment for €350 million (£300 million) in funding, subject to court approval. It says scheduled services, bookings and customer support are operating normally.

AirBaltic says flights will continue as planned throughout the court-supervised process, which it expects to complete by June next year.

What are your rights if a flight is cancelled?

Flights departing from the UK are covered by UK261 passenger-rights rules. Services from Riga to the UK fall under EU passenger-rights regulations because they depart from an EU airport.

In either direction, passengers whose flights are cancelled would usually be entitled to choose between a refund and alternative travel arrangements.

Anton Radchenko, aviation expert and chief executive 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.”

Radchenko said that if AirBaltic cancels flights while continuing to operate, passengers should ask for a refund or alternative routing, along with any assistance they are entitled to, rather than simply accepting the first option offered.

Fixed compensation may also be due, depending on how much notice passengers receive and the reason for the cancellation.

If an airline stops trading altogether, however, having a legal claim does not guarantee a quick refund. That makes it important to understand what financial protection your booking has, whether through a package holiday, your payment method or insurance.