---
title: "airBaltic Files for Chapter 11 and Tells Unions Job Cuts…"
canonical: "https://www.metaintro.com/blog/airbaltic-chapter-11-job-cuts-unions"
language: "en"
author: "drashtigarach"
published: "2026-09-15T10:06:52.000Z"
modified: "2026-09-15T10:06:52.000Z"
---

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# airBaltic Files for Chapter 11 and Tells Unions Job Cuts Are Coming

A union believes airBaltic modelled 20 to 30 percent staff cuts before its Chapter 11 filing. What crews and ground teams should do while numbers are pending.

[![Drashti Garach](https://cdn.metaintro.com/rs:fill:40:40/q:72/plain/images/5719d740-e510-42bc-8017-e040d145f35f_1766029465094.png)Drashti Garach @DrashtiGarach](/blog/author/drashtigarach)

[September 15, 2026](/blog/archive/2026/09)15 min read

![A white regional jet parked at an airport stand with ground service equipment](https://cdn.metaintro.com/rs:fill:1200:675/q:78/plain/images/airbaltic-chapter-11-job-cuts-unions-hero.jpg)

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Latvia's national airline is still flying, but the people who fly it do not yet know how many of them will keep their jobs. In [the Reuters interview carried by Investing.com](https://www.investing.com/news/stock-market-news/exclusiveairbaltic-in-talks-with-unions-to-cut-workers-amid-restructuring-ceo-says-4900287), airBaltic's chief executive said that with plans to reduce capacity, a change in workforce is a [natural conclusion](https://www.investing.com/news/stock-market-news/exclusiveairbaltic-in-talks-with-unions-to-cut-workers-amid-restructuring-ceo-says-4900287), and that the airline will only put a figure on it [when all of that is concluded](https://www.investing.com/news/stock-market-news/exclusiveairbaltic-in-talks-with-unions-to-cut-workers-amid-restructuring-ceo-says-4900287). At [Metaintro](https://www.metaintro.com) we follow restructurings from the worker's side, and the short answer for airBaltic staff is this. No cut total exists yet, the airline is operating under court protection, and the terms of any layoffs are being negotiated right now. That makes the next few weeks a window to prepare, not a reason to panic.

## What happened

The filing itself was quick and deliberate. [Reporting at Aviation Week](https://aviationweek.com/air-transport/airlines-lessors/airbaltic-files-chapter-11-bankruptcy-restructuring) says the case was [lodged with the Southern District of New York bankruptcy court on Sept. 14](https://aviationweek.com/air-transport/airlines-lessors/airbaltic-files-chapter-11-bankruptcy-restructuring), covering the airline along with its airBaltic Training and Baltic Cargo Center subsidiaries, and that the court-supervised restructuring is [expected to be completed around June 2027](https://aviationweek.com/air-transport/airlines-lessors/airbaltic-files-chapter-11-bankruptcy-restructuring). The airline told the outlet it chose the U.S. process because its financial obligations are international in nature, and pointed to Scandinavian Airlines as another European carrier that went the same way.

Money ran short before the filing did. [The Yahoo Finance story, first published by TheStreet](https://finance.yahoo.com/economy/articles/another-national-airline-files-chapter-141354430.html), reports that the carrier filed despite [securing more than €257 million in short-term funds earlier in September](https://finance.yahoo.com/economy/articles/another-national-airline-files-chapter-141354430.html), and that [local bondholders with more than 70% of the value of the debt ultimately refused additional loans](https://finance.yahoo.com/economy/articles/another-national-airline-files-chapter-141354430.html). The same story ties the pressure to jet fuel prices that remain [elevated over the war in Iran](https://finance.yahoo.com/economy/articles/another-national-airline-files-chapter-141354430.html), and notes the airline flies to [more than 80 European and Middle Eastern destinations from Latvia](https://finance.yahoo.com/economy/articles/another-national-airline-files-chapter-141354430.html).

The debts are large, and one line in them matters directly to employees. [TheTravel's account of the bankruptcy papers](https://www.thetravel.com/another-airline-follows-spirit-and-files-for-bankruptcy-in-the-us-3000-employees-let-go/) says the carrier has [a reported $583 million in funded debt and finance lease liabilities](https://www.thetravel.com/another-airline-follows-spirit-and-files-for-bankruptcy-in-the-us-3000-employees-let-go/), and that it plans to cancel or postpone [previously placed orders for 40 new Airbus planes](https://www.thetravel.com/another-airline-follows-spirit-and-files-for-bankruptcy-in-the-us-3000-employees-let-go/) and engines from Pratt and Whitney.

> airBaltic also carries a [$122 million (106 million euros) debt for payroll taxes and airline taxes and fees](https://www.thetravel.com/another-airline-follows-spirit-and-files-for-bankruptcy-in-the-us-3000-employees-let-go/), according to TheTravel.

To keep flying through the case, the airline has lined up new borrowing. [Aviation Week reports](https://aviationweek.com/air-transport/airlines-lessors/airbaltic-files-chapter-11-bankruptcy-restructuring) that airBaltic has committed to [€350 million ($406 million) of new debtor-in-possession (DIP) financing](https://aviationweek.com/air-transport/airlines-lessors/airbaltic-files-chapter-11-bankruptcy-restructuring), which still needs court approval, and that the existing management board and supervisory board will remain in place. The [U.S. Courts guide to Chapter 11](https://www.uscourts.gov/court-programs/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics) explains why that matters. A debtor in this kind of case [may continue to operate its business, and may, with court approval, borrow new money](https://www.uscourts.gov/court-programs/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics). In plain terms, the same managers keep running the airline and making staffing decisions, with a judge looking over their shoulder.

The job cuts come from a business plan that was set before the filing. [The Baltic Times report on the union's position](https://www.baltictimes.com/airbaltic_s_business_plan_may_mean_significant_reduction_in_number_of_employees_-_trade_union/) says the airline's latest business plan will see the fleet [reduced from 51 to 36 by the end of 2026](https://www.baltictimes.com/airbaltic_s_business_plan_may_mean_significant_reduction_in_number_of_employees_-_trade_union/), with a long-term goal of [only about 40 aircraft by 2031](https://www.baltictimes.com/airbaltic_s_business_plan_may_mean_significant_reduction_in_number_of_employees_-_trade_union/), a sharp turn from the [previously projected fleet of 100 aircraft](https://www.baltictimes.com/airbaltic_s_business_plan_may_mean_significant_reduction_in_number_of_employees_-_trade_union/). Fewer planes means fewer pilots, cabin crew, engineers and ground staff to operate them, and the union has done that arithmetic itself.

> The Latvian Aviation Trade Union believes scenarios involving [a 20 percent to 30 percent reduction in the number of employees](https://www.baltictimes.com/airbaltic_s_business_plan_may_mean_significant_reduction_in_number_of_employees_-_trade_union/) were assessed while the plan was drawn up, according to The Baltic Times.

The union's complaint is about process as much as numbers. It says it [learned about it from the media](https://www.baltictimes.com/airbaltic_s_business_plan_may_mean_significant_reduction_in_number_of_employees_-_trade_union/) and was refused a seat at the [August 11 online presentation of the business plan to airBaltic employees](https://www.baltictimes.com/airbaltic_s_business_plan_may_mean_significant_reduction_in_number_of_employees_-_trade_union/). When the two sides did meet, [reporting at Baltic News Network](https://bnn-news.com/airbaltic-could-face-staff-layoffs-union-demands-social-guarantees-282901) says airBaltic signalled it would meet only [the minimum requirements](https://bnn-news.com/airbaltic-could-face-staff-layoffs-union-demands-social-guarantees-282901) of Latvian labour law, which the union read as a plan to notify it of a decision already made and consult only on that decision. The union also rejected a proposed non-disclosure agreement as too broad for any union to sign.

Then came the filing, and with it the first public acknowledgment from the top that jobs are on the table. Chief executive Erno Hilden told Reuters [we are currently carrying out the consultations with the labour unions](https://www.investing.com/news/stock-market-news/exclusiveairbaltic-in-talks-with-unions-to-cut-workers-amid-restructuring-ceo-says-4900287), and said the biggest changes would come in the business [where it loans out its planes and crew to other carriers for a fee](https://www.investing.com/news/stock-market-news/exclusiveairbaltic-in-talks-with-unions-to-cut-workers-amid-restructuring-ceo-says-4900287). Union chairperson Dace Kavasa told the same outlet that [the collective dismissal consultations are ongoing](https://www.investing.com/news/stock-market-news/exclusiveairbaltic-in-talks-with-unions-to-cut-workers-amid-restructuring-ceo-says-4900287), that there are still [quite serious disagreements on the objectivity of some proposed criteria](https://www.investing.com/news/stock-market-news/exclusiveairbaltic-in-talks-with-unions-to-cut-workers-amid-restructuring-ceo-says-4900287), and that the union hoped for constructive decisions by the end of the week.

> Talks include [allowing some workers to stay on part-time](https://www.investing.com/news/stock-market-news/exclusiveairbaltic-in-talks-with-unions-to-cut-workers-amid-restructuring-ceo-says-4900287), and it is still unclear how many people will be dismissed, according to Reuters.

## Where the coverage agrees, and where it splits

The coverage published after the filing agrees on the basics. Reuters, Aviation Week, TheTravel and the TheStreet story all report the New York filing and the airline's message that flights continue. Aviation Week, TheTravel and TheStreet each print a completion target of around June 2027, while the Reuters interview is the piece that adds a coming workforce adjustment with no number attached. The Baltic Times and Baltic News Network reports came out before the filing, so they describe the business plan and the union dispute rather than the court case. [TheTravel quotes the passenger notice](https://www.thetravel.com/another-airline-follows-spirit-and-files-for-bankruptcy-in-the-us-3000-employees-let-go/) as saying [our aircraft, crews, schedule and service continue exactly as before](https://www.thetravel.com/another-airline-follows-spirit-and-files-for-bankruptcy-in-the-us-3000-employees-let-go/), which is reassuring for travelers and says nothing about how many of those crews there will be next year.

The headcount is where coverage needs the most care. TheTravel frames the story around job losses, saying the adjustment [could see thousands of airline employees let go](https://www.thetravel.com/another-airline-follows-spirit-and-files-for-bankruptcy-in-the-us-3000-employees-let-go/), but the only hard figure it gives is that the airline [employs around 3,000 people](https://www.thetravel.com/another-airline-follows-spirit-and-files-for-bankruptcy-in-the-us-3000-employees-let-go/). That is the size of the whole workforce, not an announced layoff figure. Nobody has announced how many roles will go, and the only percentage in circulation reflects what the union believes the business plan assessed. If you work at the airline, treat any single number you see shared online as a guess until it comes out of the consultation.

The fleet numbers do not match either. [Aviation Week counts](https://aviationweek.com/air-transport/airlines-lessors/airbaltic-files-chapter-11-bankruptcy-restructuring) [54 in-service A220s and two of the type stored](https://aviationweek.com/air-transport/airlines-lessors/airbaltic-files-chapter-11-bankruptcy-restructuring), noting [only 15 are owned by the carrier](https://aviationweek.com/air-transport/airlines-lessors/airbaltic-files-chapter-11-bankruptcy-restructuring). [Baltic News Network describes a plan](https://bnn-news.com/airbaltic-could-face-staff-layoffs-union-demands-social-guarantees-282901) to operate [36 Airbus A220-300 aircraft by the end of 2026, compared with 54 aircraft currently](https://bnn-news.com/airbaltic-could-face-staff-layoffs-union-demands-social-guarantees-282901), while the airline's business plan starts from 51. The union itself notes that in 2025 airBaltic's [maximum number of aircraft was 54](https://www.baltictimes.com/airbaltic_s_business_plan_may_mean_significant_reduction_in_number_of_employees_-_trade_union/), and [the Yahoo Finance piece](https://finance.yahoo.com/economy/articles/another-national-airline-files-chapter-141354430.html) describes a [fleet of 50 Airbus A220-300 planes](https://finance.yahoo.com/economy/articles/another-national-airline-files-chapter-141354430.html). The gap likely reflects stored and grounded jets, but the direction is the same in every version. The union puts the planned fleet reduction at [approximately 30 percent](https://www.baltictimes.com/airbaltic_s_business_plan_may_mean_significant_reduction_in_number_of_employees_-_trade_union/) in its own calculations, and staffing follows the flying.

The financing details split too. Aviation Week puts the new loan at [an interest rate of around 12%](https://aviationweek.com/air-transport/airlines-lessors/airbaltic-files-chapter-11-bankruptcy-restructuring), while the TheStreet story describes it as priced at a [Secured Overnight Financing Rate (SOFR) of 8%](https://finance.yahoo.com/economy/articles/another-national-airline-files-chapter-141354430.html) and TheTravel converts it to [$405 million in financing](https://www.thetravel.com/another-airline-follows-spirit-and-files-for-bankruptcy-in-the-us-3000-employees-let-go/). For staff the exact rate matters less than the fact that expensive borrowing puts pressure on management to show lenders fast cost savings, and payroll is one of the biggest costs an airline controls.

The cause is framed differently depending on who is writing. The travel outlets lead with fuel and the Iran war. [Aviation Week points instead](https://aviationweek.com/air-transport/airlines-lessors/airbaltic-files-chapter-11-bankruptcy-restructuring) to an all-A220 fleet that was heavily impacted by engine maker [powder metal issues](https://aviationweek.com/air-transport/airlines-lessors/airbaltic-files-chapter-11-bankruptcy-restructuring), and to plans announced in August to cut the fleet and refocus on the core Riga home base. Both are true, and the second explains why the cuts are structural rather than a temporary response to one bad fuel season.

What the coverage mostly glossed over is the law on consultation, and that is where workers have leverage. [The Baltic Times report](https://www.baltictimes.com/airbaltic_s_business_plan_may_mean_significant_reduction_in_number_of_employees_-_trade_union/) notes the union is citing [Case C-188/03](https://www.baltictimes.com/airbaltic_s_business_plan_may_mean_significant_reduction_in_number_of_employees_-_trade_union/) at the EU Court of Justice, which says the duty to consult arises as soon as a strategic decision is made that requires the employer to plan for collective redundancies. [Baltic News Network summarises Latvian law](https://bnn-news.com/airbaltic-could-face-staff-layoffs-union-demands-social-guarantees-282901) as requiring an employer to consult [in good time in order to reach an agreement on the number of employees affected](https://bnn-news.com/airbaltic-could-face-staff-layoffs-union-demands-social-guarantees-282901), the procedure and the social guarantees, and to consider ways of avoiding cuts or reducing them.

The U.S. court side has its own details that headlines skipped. The [U.S. Courts guide](https://www.uscourts.gov/court-programs/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics) says the U.S. trustee imposes requirements on a debtor in possession concerning matters such as [paying current employee withholding and other taxes](https://www.uscourts.gov/court-programs/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics). It also says that once a plan is approved, [the confirmed plan creates new contractual rights, replacing or superseding pre-bankruptcy contracts](https://www.uscourts.gov/court-programs/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics). Both lines are general guidance on how U.S. Chapter 11 works, not findings about airBaltic. Our reading is that the deal struck during this case could reshape some terms staff work under afterwards, and how that interacts with Latvian employment contracts and collective agreements is a question for the union and its lawyers.

## What this means for your job search

Our argument is simple. The most valuable period for airBaltic staff is the one happening now, before any number is fixed. The chief executive says figures come after consultation, and the union believes those scenarios were already assessed inside the plan. The distance between those two positions is where workers can still change the outcome, through fewer dismissals, better selection criteria, part-time options or stronger severance. Once a total is signed off, most of that room disappears.

Start with your union, even if you have never been active in it. Ask your representative what criteria are on the table and why the union has called some of them [quite serious disagreements](https://www.investing.com/news/stock-market-news/exclusiveairbaltic-in-talks-with-unions-to-cut-workers-amid-restructuring-ceo-says-4900287) in its talks with management. Criteria such as seniority, disciplinary records, licence type and base assignment decide who goes, so you want to know how your own record scores before the list is drawn. The union has said it wants [substantial social protection guarantees rather than merely the statutory minimum](https://bnn-news.com/airbaltic-could-face-staff-layoffs-union-demands-social-guarantees-282901), and that demand carries more weight when members visibly back it.

Do not sign anything individually without advice. [Baltic News Network reports](https://bnn-news.com/airbaltic-could-face-staff-layoffs-union-demands-social-guarantees-282901) the union's claim that during the [Covid-19 pandemic crisis in 2020](https://bnn-news.com/airbaltic-could-face-staff-layoffs-union-demands-social-guarantees-282901), severance guarantees were allegedly offered to employees only if they signed agreements ending their employment, and that rehiring later worked more like a fresh recruitment round. Whether or not that account is disputed, the lesson is practical. A voluntary exit form can quietly remove protections a collective agreement would give you. If you are offered one, ask what the collective deal will contain first, and read a guide to [what to push for in a severance package, including outplacement support](https://www.metaintro.com/blog/what-is-outplacement-severance-package-negotiate-2026) before you decide.

If you fly or work on the wet lease side, plan as if your role is the most exposed. The chief executive named the operation [where it loans out its planes and crew to other carriers for a fee](https://www.investing.com/news/stock-market-news/exclusiveairbaltic-in-talks-with-unions-to-cut-workers-amid-restructuring-ceo-says-4900287) as the area of biggest change. Ask now whether wet lease crews can move to the core network, and whether the union is negotiating transfer rights for them, because the airline has said it wants to [refocus on its core Riga home base operations](https://aviationweek.com/air-transport/airlines-lessors/airbaltic-files-chapter-11-bankruptcy-restructuring).

Keep your pay records outside company systems. airBaltic says operations continue and that the new financing, [together with cash generated from ongoing operations](https://aviationweek.com/air-transport/airlines-lessors/airbaltic-files-chapter-11-bankruptcy-restructuring), should give it enough liquidity for the case. That is good news for regular salaries. Still, a company that owes [$122 million (106 million euros) debt for payroll taxes and airline taxes and fees](https://www.thetravel.com/another-airline-follows-spirit-and-files-for-bankruptcy-in-the-us-3000-employees-let-go/) is one where you should download payslips, roster history, overtime logs and contract documents now, and check that social contributions on your payslip show up in your state account. If you are ever owed money, the [U.S. Courts guide](https://www.uscourts.gov/court-programs/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics) says a creditor whose claim is not listed, or is listed as disputed, [must file a proof of claim](https://www.uscourts.gov/court-programs/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics) to take part in the plan, and your dates and amounts are your evidence.

Protect your licence and your certifications. The union wants guarantees that [employees in certified professions are able to maintain their professional qualifications](https://bnn-news.com/airbaltic-could-face-staff-layoffs-union-demands-social-guarantees-282901), and that point deserves attention from every pilot, engineer and cabin crew member. A lapsed type rating or recurrent training slot is far more expensive to recover than a missed paycheck. Book any training you can while you are still on the roster, and keep copies of every certificate and logbook page.

Weigh the part-time option honestly. The union is discussing [alternative employment solutions](https://www.investing.com/news/stock-market-news/exclusiveairbaltic-in-talks-with-unions-to-cut-workers-amid-restructuring-ceo-says-4900287), including part-time work. For some people that keeps seniority, benefits and a foot in the door while the airline recovers. For others it is a slow exit on reduced pay. Run the numbers on your household budget before you volunteer for it, and ask whether a part-time contract affects your place in any future recall.

Start looking quietly now, not after a notice arrives. Aviation skills travel across borders and across industries. Pilots, maintenance engineers, dispatchers, cargo handlers and trainers all have skills that carriers, lessors, cargo operators, airports and training centers need. The airline's own subsidiaries in the filing include a training arm and a cargo center, which tells you how many different jobs sit inside one airline. Update your CV with specific aircraft types, hours and certifications. If you fly, check [what airline pilots earn at other carriers](https://www.metaintro.com/blog/how-much-do-pilots-make) and [how first officer pay compares with captain pay](https://www.metaintro.com/blog/co-pilot-pay-vs-captain-pay) so you can judge any outside offer quickly. Reach out to former colleagues who have already moved on, and ask your national employment service what retraining and job matching support it offers to people facing collective redundancies.

Finally, watch the dates that matter. The union hoped for decisions by the end of this week, the court still has to approve the financing, and [Aviation Week reports](https://aviationweek.com/air-transport/airlines-lessors/airbaltic-files-chapter-11-bankruptcy-restructuring) the restructuring is [expected to be completed around June 2027](https://aviationweek.com/air-transport/airlines-lessors/airbaltic-files-chapter-11-bankruptcy-restructuring). Each of those points can bring news about jobs. Staying informed and organised through them is the best protection any airBaltic worker has right now.

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## People Also Asked

### Q: How many jobs will airBaltic cut?

A: No number has been announced. The chief executive said figures will come [when all of that is concluded](https://www.investing.com/news/stock-market-news/exclusiveairbaltic-in-talks-with-unions-to-cut-workers-amid-restructuring-ceo-says-4900287), meaning the union consultations. The union believes scenarios of [a 20 percent to 30 percent reduction in the number of employees](https://www.baltictimes.com/airbaltic_s_business_plan_may_mean_significant_reduction_in_number_of_employees_-_trade_union/) were modelled, and the airline [employs around 3,000 people](https://www.thetravel.com/another-airline-follows-spirit-and-files-for-bankruptcy-in-the-us-3000-employees-let-go/), but neither figure is an announced cut.

### Q: Will airBaltic staff keep getting paid during Chapter 11?

A: The airline says it will. It told Aviation Week that new financing plus operating cash is [expected to provide sufficient liquidity](https://aviationweek.com/air-transport/airlines-lessors/airbaltic-files-chapter-11-bankruptcy-restructuring) through the case, and a Chapter 11 debtor [may continue to operate its business](https://www.uscourts.gov/court-programs/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics). Keep your own payslips and records in case anything changes.

### Q: Why are wet lease crews more at risk?

A: The chief executive told Reuters the biggest changes involve the business [where it loans out its planes and crew to other carriers for a fee](https://www.investing.com/news/stock-market-news/exclusiveairbaltic-in-talks-with-unions-to-cut-workers-amid-restructuring-ceo-says-4900287). With the airline refocusing on its Riga base, crews tied to that flying should ask their union about transfer rights now.

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