AirBaltic files for bankruptcy - but expert warns thousands of British travellers NOT to cancel their flights

See more Daily Mail on Google - save us as a Preferred Source Published: 06:10 EDT, 15 September 2026 | Updated: 06:34 EDT, 15 September 2026 A European airline has filed for bankruptcy, with flights and services set to continue without interruption.All flights are operating as scheduled, and tickets and reservations remain valid; passengers can continue to book and travel with the carrier as usual.The airline filed for Chapter 11 protection - which sets out the statutory procedure for reorganisation - in New York on 14 September as it seeks to restructure its debts. The carrier has a commitment for €350 million (£299 million) in financing, subject to court approval, and insists that scheduled flights, bookings and customer services are continuing normally.The carrier is Latvia's national airline, airBaltic. However, AirAdvisor experts have said that UK passengers should not interpret the word 'bankruptcy' as meaning the airline has stopped flying and cancel valid bookings themselves. A European airline that runs flights from the UK has filed for bankruptcyA voluntary cancellation would normally be governed by the passenger's fare conditions, potentially removing the stronger rights that arise if the airline later cancels the flight.AirBaltic currently operates direct services between London Gatwick and Riga, alongside a twice-weekly seasonal Aberdeen to Riga service. No cancellation of either UK route has been announced. These serve approximately 4,144 passengers each week.Anton Radchenko, aviation expert and CEO of AirAdvisor, said: 'Chapter 11 is designed to give a company space to keep operating while it restructures, so I would not cancel a valid airBaltic booking when the airline is still flying and says the ticket remains valid. Anton Radchenko, aviation expert and CEO of AirAdvisor, warned travellers not to cancel their journeys'Cancelling voluntarily could leave the passenger subject to the ticket's normal restrictions, whereas waiting for the airline's decision preserves their statutory rights if the service is later changed or cancelled.'I would use this moment to identify exactly what protects the booking. A direct flight is not usually Atol-protected, airline-failure insurance is not standard, and the practical fallback may depend on whether the passenger booked a genuine package, paid directly by credit card or can make a chargeback claim.'If airBaltic cancels while continuing to operate, passengers should request a refund or rerouting and the necessary care rather than accepting whichever option is presented first. 'Fixed compensation may also apply depending on the notice and reason, but if an airline ceases trading completely, possessing a legal claim does not guarantee immediate repayment, which is why the financial protection behind the booking matters.'Flights departing the UK fall under UK261 and Riga to UK services are protected under EU passenger-rights rules because they depart from an EU airport. In either direction, a cancellation would normally trigger the choice between reimbursement and rerouting, together with care where passengers must wait.A flight purchased directly from airBaltic is not normally Atol-protected. Passengers with an Atol-protected package would instead have protection through their package organiser, while people who booked directly may need to rely on Section 75, card chargeback or existing travel insurance if the airline eventually stopped operating. Latvia's national airline, airBaltic, has so far not cancelled any of its journeysScheduled Airline Failure Insurance is not included in most travel policies, so passengers should check the cover they already hold rather than assume every policy protects them. A policy purchased after the Chapter 11 announcement may not cover an event that was already known.The airline has confirmed that it plans to reduce its fleet from 54 aircraft to 36 by the end of 2026. CEO Erno Hilden has also said that consultations are taking place over workforce reductions, although no number has been decided. He expects the largest operational changes to concern airBaltic's wet-lease business and says no interruption to scheduled passenger services is currently expected.