KBRA Comments on airBaltic Bankruptcy

NEW YORK--(BUSINESS WIRE)-- AS Air Baltic Corporation (airBaltic) filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York on September 14, 2026, as part of a financial restructuring aimed at reducing debt and strengthening its liquidity position. airBaltic is the flag carrier of Latvia and was founded in 1995.

The filing follows continued financial pressure stemming from elevated debt levels, geopolitical challenges, higher fuel costs, and engine availability issues affecting its Airbus A220-300 fleet. The company said its restructuring plans include reducing its fleet to around 36 aircraft from 54 by year-end 2026. It will also return approximately 20 aircraft to lessors while seeking to renegotiate certain lease obligations. The company has secured a commitment for EUR350 million of debtor-in-possession financing, subject to court approval, to support operations during the restructuring process. Flights are expected to continue operating as scheduled during the Chapter 11 proceedings.

KBRA-rated aviation asset-backed securities (ABS) currently have no exposure to airBaltic. More broadly, Airbus A220 aircraft have had limited representation in aviation ABS transactions compared with more widely securitized narrowbody aircraft, such as the Airbus A320 and Boeing 737 families.

Related Publications

• Aviation ABS Repayment: The Role of Asset Sales
• KBRA Comments on Aviation ABS Exposure as Spirit Airlines Ceases Operations

About KBRA

KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.

Doc ID: 1017031

View source version on businesswire.com: https://www.businesswire.com/news/home/20260916441993/en/

Alan Greenblatt, Managing Director
+1 646-731-2496
[email protected]

Michael Lepri, Senior Director
+1 646-731-3389
[email protected]

Preston Boutwell, Director
+1 646-731-2367
[email protected]

Teddy DeClue, Senior Analyst
+1 646-731-3364
[email protected]

Business Development Contact

Arielle Smelkinson, Senior Director
+1 646-731-2369
[email protected]

Source: Kroll Bond Rating Agency, LLC

You May Also Be Interested In

• GoCardless Processes the First Agentic Account-to-Account Payment in the UK
• Circus Starts Commercial Operations in the United Arab Emirates – Partners with Royal Prestige Catering
• accesso® Intelligence Introduces Agentic AI for Automated Workflows in Visitor Attractions