airBaltic: Latvia's Flag Carrier Files Chapter 11

On September 14, 2026, Latvia's airBaltic voluntarily filed for Chapter 11 protection in the U.S. Bankruptcy Court in New York, seeking to restructure its debts after jet fuel prices doubled during the U.S.-Iran war — the worst aviation crisis since COVID, per Reuters. Court filings showed about $583 million in funded debt and lease liabilities; the majority-Latvian-government-owned carrier had burned through €380 million in 2024 bonds and a €30 million emergency state loan. It became the second airline casualty of the fuel crisis after Spirit Airlines collapsed in May.

The lesson: An empire built on expansion and cheap fuel has no cushion when the cost of its raw material doubles — growth funded by debt collapses the moment the assumptions change.

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