Latvia’s national airline airBaltic has received consent from a majority of its new debtor-in-possession lenders to extend until 10 November the deadline for keeping certain Lufthansa Group contracts in force during its restructuring under the US Chapter 11 process, according to documents filed with the court. TVNET/LETA reported the filing on 19 October 2026.
The previous deadline was 30 days after the Chapter 11 petition. airBaltic filed on 14 September this year, so the original date for assuming the Lufthansa contracts was around 14 October. Court papers say the Lufthansa Group has been informed of the extension.
Keeping those contracts is one of the milestones in the restructuring timetable. It requires airBaltic to assume, or otherwise keep in force, specified cooperation agreements with the Lufthansa Group. Earlier filings show the airline asked the court to approve assumption of a particular wet-lease contract with Austrian Airlines, a Lufthansa Group carrier. Under such contracts an airline supplies the aircraft, crew, maintenance and insurance for another airline.
The contract condition is one of several milestones tied to DIP financing of up to €350 million in total. Missing a condition can affect access to later funding tranches.
airBaltic has begun restructuring its financial obligations under Chapter 11. It has a binding commitment for up to €350 million of new DIP financing to support liquidity and operations during the case. It has already received a first tranche of €140 million, of which €78.925 million will be used to buy out eight aircraft and seven engines.
SVP arranged the financing, which Barclays, Hayfin Capital Management, Morgan Stanley, Oaktree Capital Management and Strategic Value Partners have committed to provide. The interest rate is SOFR plus 8%, currently about 12%, with additional fees of up to €52.5 million in the process.
An earlier plan to raise up to €257 million from bondholders at a 25% annual rate will not go ahead. A bondholder group, the Ad Hoc Group, has filed objections in court to the DIP terms and to their possible effect on bondholder security.
Chapter 11 shields airBaltic from creditor claims until the restructuring is complete. The company says flights and customer service continue as usual: services will follow the planned schedule, existing tickets and bookings remain valid, and passengers can keep buying tickets and flying with airBaltic.
The process is expected to end in a reorganisation plan that the court must approve. It could conclude in mid-2027.
Last year the airBaltic group’s turnover rose 4.2% from 2024 to €779.344 million. Group losses were €44.337 million, 2.7 times smaller than in 2024. In 2025 the airline carried 5.2 million passengers, 1% more than in 2024.
Last summer Germany’s national airline Lufthansa became an airBaltic shareholder. The Latvian state now holds 88.37% of the shares, Lufthansa 10%, Danish businessman Lars Thuesen’s Aircraft Leasing 1 1.62%, and other holders 0.01%. Share capital is €41.819 million.