With jet fuel prices still elevated over the war in Iran and climbing suddenly each time there is renewed conflict, multiple airlines are struggling to cover their costs, in some cases to the point of having to declare bankruptcy.

Mexican holiday carrier Magnicharters filed for bankruptcy protection in Mexico City back in May, while British cargo airline European Cargo entered administration, which is the equivalent of bankruptcy for a corporation in the United Kingdom, at the beginning of June.

Jetflite, a Finnish carrier that launched out of Helsinki in 1980, also began the winding-down process back in May before definitively canceling all of its charter flights for 2026.

AirBaltic files for Chapter 11 bankruptcy in New York court

Despite securing more than €257 million in short-term funds earlier in September, the airBaltic flag carrier of Latvia voluntarily filed for Chapter 11 protection in the U.S. Bankruptcy Code in New York on Sept. 14.

“AirBaltic has been experiencing acute financial stress due to a combination of financial and geopolitical factors,” the airline’s board writes in the filing with the bankruptcy court, as Reuters reported.

Related: Another travel company ordered to close in bankruptcy, cancel all trips

The bankruptcy process, which the airline says it expects to last until June 2027, gives the struggling airline temporary respite from creditors as it secures €350 million of debtor-in-possession financing from lenders, including Strategic Value Partners, Barclays, and Morgan Stanley, at a Secured Overnight Financing Rate (SOFR) of 8%.

The airline flies to more than 80 European and Middle Eastern destinations from Latvia. It had reportedly sought multiple other options to restructure without a bankruptcy, but struggled to raise short-term financing on the timeframe needed to meet interest payment deadlines, according to FlightGlobal.

Air Baltic is the flag carrier of Latvia.

Jean-Marc Pierard / Getty Images

What’s happening with AirBaltic post-bankruptcy

Local bondholders with more than 70% of the value of the debt ultimately refused additional loans. The search for an investor continues as AirBaltic seeks to reduce its fleet of 50 Airbus A220-300 planes and restructure its debts under a bankruptcy status that buys it more time to do so, Reuters noted.

According to AirBaltic, the restructuring process will not affect flights, as reservations and ticket sales are expected to go on as scheduled.

More Travel News:

  • Airline to launch unusual new flight to Cayman Islands from the U.S.
  • There is a very cool Irish version of swimming pigs in The Bahamas
  • Unexpected country is most luxurious travel destination for 2026
  • Low-cost airline launches easier way to get to Sri Lanka

“I view this solution as one of the best options for ensuring airBaltic’s viability, as it provides the necessary tools and time to implement the restructuring plan,”
Latvian Prime Minister Andris Kulbergs said in a statement.

The move from the national airline and flag carrier of Latvia marks the biggest bankruptcy news in aviation since the collapse of Florida-based Spirit Airlines in May 2026.

Airlines that filed for bankruptcy in 2026:

  • Spirit Airlines: The largest airline shutdown of the year occurred when Spirit Airlines canceled all remaining flights on May 2. Although the airline had filed for Chapter 11 protection twice before, the skyrocketing price of jet fuel dealt the final blow.
  • Magnicharters: The Mexican low-cost airline canceled all flights and eventually filed for bankruptcy protection in May 2026 amid mounting financial pressures.
  • Starflite Aviation: The Houston-based carrier had its AOC license revoked in March 2026, amid FAA claims that owners falsified pilot training records to bypass safety audits.
  • AlpAvia: The Slovenian charter airline shut down in March 2026 due to a string of financial problems.

Related: Another airline files for bankruptcy, will liquidate