European airline that carries 4,000 UK passengers a week files for bankruptcy

The Latvian airline flies to London Gatwick and Aberdeen (Picture: Shutterstock / BalkansCat) A European airline that carries thousands of British passengers a week has filed for bankruptcy. Latvia’s airBaltic is now the second carrier to file for bankruptcy as a result of financial difficulties linked to the US war on Iran, following the collapse of America’s Spirit Airlines in May. The good news for passengers, however, is that flights are still operating as usual. For now, at least. AirBaltic operates direct flights from London Gatwick to Riga, along with a seasonal twice-weekly route between Aberdeen and the Latvian capital. Data from AirAdvisor shows these combined routes accommodate roughly 4,144 passengers each week. The airline, which is majority-owned by the Latvian government, voluntarily filed for bankruptcy on Monday, citing ‘acute financial stress due to a combination of financial and geopolitical factors.’ In a statement to Metro, a spokesperson said: ‘AirBaltic has voluntarily initiated a U.S. Chapter 11 process to restructure its financial obligations while continuing normal operations. ‘Flights and services continue without interruption. All flights are operating as scheduled, and tickets and reservations remain valid. Passengers can continue to book flights and travel with airBaltic as usual.’ The company said it expects to complete the Chapter 11 process by approximately June 2027. Despite financial turbulence, the airline has secured immediate funding to ensure that all flights continue to operate exactly as scheduled (Picture: Shutterstock / MC MEDIASTUDIO) What does this mean for my flight? Ask Metro Use AI to go deeper into the stories you care about – powered by Metro and trusted publications. If you have a ticket to fly with airBaltic, your plans are still safe. The airline’s operations are set to continue as normal, for now. In a statement today, September 16, airBaltic confirmed that its flight schedule, wider business, employee wages, existing bookings and vendors would continue without interruption. They also confirmed that refunds, vouchers, gift cards and credits related to baggage or service claims would continue to be honoured. Travellers with upcoming journeys do not need to take any action. What is a Chaper 11? Chapter 11 bankruptcy is a section of the US Bankruptcy Code that allows businesses to reorganise their finances under court supervision. ‘Chapter 11 is a legal restructuring process, not a liquidation. That’s an important distinction for passengers: it’s designed to keep the airline flying while it sorts out its finances,’ Simon McCulloch, Chief Commercial Officer, Staysure tells Metro. Speaking today, Hildén, President and Chief Executive Officer of airBaltic said: ‘The Court’s decisions are an important first step in our financial reorganisation, allowing us to continue operating while moving forward with the restructuring. ‘The approval of our DIP financing provides additional financial stability as we work to build a stronger and more sustainable airBaltic. For our passengers, employees and partners, our focus remains unchanged: we continue flying and serving our customers as normal.’ Layoffs among its over 3,000 employees are also anticipated, though Hilden noted to Reuters on Monday, September 14, that discussions remain ongoing and no final headcount has been set. ‘I do think that the underlying business for AirBaltic is ​a very healthy one. So after we really execute on our new business plan, I do see a bright future for the company.’ If you have an upcoming flight or are looking to book, the airline received court approval to keep its business running normally today, September 16 (Picture: Getty Images) What are my rights if the flights are affected? ‘If you have an upcoming booking with the airline, it’s worth checking what protection you have, as this depends on how you booked and paid,’ Hannah Mayfield, travel money expert with PayingTooMuch, tells Metro. ‘If your flight is part of a package holiday, you’re likely to have ATOL protection through your package organiser, which can provide financial protection if the company you booked with stops trading. ‘Anyone concerned about a future booking should check what their travel insurance covers,’ Hannah urges. ‘It’s worth checking your wording now rather than waiting until you’re trying to travel. ‘Scheduled Airline Failure Insurance is often an optional extra rather than standard cover, and policies bought after a known event may exclude it,’ the expert explains. ‘With airBaltic’s Chapter 11 filing announced on 14 September, a new policy is therefore unlikely to cover the airline’s failure specifically. Be sure to check your travel insurance in case anything changes (Picture: Shutterstock/ izzuanroslan) ‘If in doubt, contact your airline or travel provider directly to confirm your booking status before you are due to fly. ‘Finally, keep an eye on your route, particularly as AirBaltic reviews its fleet and workforce. If your flight is cancelled or disrupted, check your rights for refunds and rerouting before making a decision,’ Hannah advises This is because ‘restructuring can sometimes mean route or schedule changes,’ explains Simon, who adds, ‘If a flight is cancelled or significantly delayed as a result of any operational changes, passengers departing from or arriving into the UK or EU are still protected under UK261/EU261 rules, regardless of the airline’s financial position. The airline remains liable for those obligations throughout the process.’ Future routes AirBaltic, which serves over 70 destinations, announced plans in March this year to launch five new European routes to Kuusamo in Finnish Lapland this December, including flights from London Gatwick and Manchester. ‘Together with our existing route to Kittilä, these new additions provide our customers in Finland, Latvia, Germany and the United Kingdom with even more options for planning their winter holidays,’ Mantas Vrubliauskas, vice president of Network Development at AirBaltic, noted. Flights from Manchester and London Gatwick are set to operate on Sundays from December 132026 to March 28 2027 and carry up to 148 passengers per flight. 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