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 preserving specified Lufthansa Group contracts during its restructuring under the US Chapter 11 process, according to documents filed with the court.
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. Keeping those contracts is one of the conditions in the restructuring timetable: airBaltic must assume, or keep in force, certain cooperation agreements with the Lufthansa Group. The group has been informed of the extension.
Earlier court filings show that airBaltic asked the court to approve the assumption of a specific wet-lease agreement with Austrian Airlines, part of the Lufthansa Group. Under such contracts, an airline provides the aircraft, crew, maintenance and insurance for another carrier.
Assuming the Lufthansa Group contracts is one of several milestones tied to debtor-in-possession financing of up to €350 million in total. Missing a condition can affect access to later portions of that funding.
airBaltic has a binding commitment from financiers for up to €350 million in new DIP funding to support liquidity and operations during Chapter 11. It has already received a first portion of €140 million, of which €78.925 million will be used to buy out eight aircraft and seven engines. The financing was arranged by SVP, with commitments from Barclays, Hayfin Capital Management, Morgan Stanley, Oaktree Capital Management and Strategic Value Partners. The interest rate is SOFR plus 8%, currently about 12%, and the process also includes additional fees of up to €52.5 million.
An earlier plan to raise up to €257 million from bondholders at an annual rate of 25% will not go ahead. At the same time, a bondholder group, the Ad Hoc Group, has filed objections in court to the DIP terms and to their possible effect on bondholders’ security. Chapter 11 shields airBaltic from creditor claims until the restructuring is complete.
The airline says flights and customer service will continue as usual. Services will follow the planned schedule, existing tickets and bookings remain valid, and passengers can keep buying tickets and travelling with airBaltic. The process is expected to end in a reorganisation plan that a court must approve, and it could conclude in mid-2027.
Last year, compared with 2024, airBaltic group revenue rose 4.2% 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 owns 88.37% of the shares, Lufthansa 10%, Danish entrepreneur Lars Thuesen’s company Aircraft Leasing 1 1.62%, and other holders 0.01%. Share capital is €41.819 million.