Latvian airline airBaltic voluntarily filed for Chapter 11 protection in New York on Monday as soaring fuel costs, debt and aircraft-engine shortages intensified its financial strain. The carrier has secured commitments for €350 million ($405 million) in financing from Strategic Value Partners, Barclays, Hayfin Capital Management, Morgan Stanley and Oaktree Capital Management, subject to court approval, at an interest rate of about 12%. airBaltic reported a €44.3 million net loss on €779.3 million in revenue in 2025 and has about $583 million of funded debt and finance-lease liabilities, alongside roughly €106 million of payroll taxes, airline taxes and other fees. Chief Executive Erno Hilden said the restructuring targets about €44 million in annual profit improvements and is expected to conclude by June 2027. The airline plans to continue operating while reducing its Airbus A220-300 fleet from 54 aircraft to 36 by the end of 2026, with potential changes to aircraft and engine commitments and its workforce of more than 3,000 employees.