RIGA, Latvia – Latvian airline airBaltic said Monday it has voluntarily filed for Chapter 11 bankruptcy protection in the United States as it seeks to restructure its financial obligations while continuing to operate normally.

The airline and certain subsidiaries filed proceedings in U.S. Bankruptcy Court for the Southern District of New York.

AirBaltic said all flights are operating as scheduled and that tickets and reservations remain valid. Passengers can continue to book and travel with the airline as usual, and customer service will continue without interruption.

The airline has secured a commitment for 350 million euros (about $405 million) in debtor-in-possession financing arranged by Strategic Value Partners to provide liquidity and support operations during the Chapter 11 process.

The financing carries an interest rate of approximately 12% and is intended to provide liquidity during the restructuring, the airline said.

The restructuring is intended to create a stronger capital structure, a more competitive cost position and a sustainable financial foundation, it added.

AirBaltic said the process will allow it to address its financial obligations, including commitments involving aircraft lessors and other stakeholders. The company expects to complete the process by June 2027.

The Latvian government has an 88% stake in airBaltic, while Lufthansa holds 10%. The remainder is held by private shareholders.

The airline is the single-largest operator of Airbus A220-300 jets, with more than 50 aircraft in its fleet.