AirBaltic seeks protection in the US / The war with Iran and rising fuel prices put pressure on small airlines

AirBaltic filed for protection under Chapter 11 of U.S. bankruptcy law on Monday, becoming the first European airline to resort to this procedure during the current conflict with Iran. The move heightens fears of a difficult winter for smaller airlines, affected by declining bookings and rising fuel costs.

The price of jet fuel has doubled since the beginning of the war, and the continuation of the blockade in the Strait of Hormuz could keep costs at elevated levels. Airlines operate on thin margins and are entering the cold season after using up some of the liquidity accumulated during the summer.

Pressure is also being felt by major operators. Wizz Air reported higher operating losses in the first quarter and expects revenues to decline immediately, although passenger numbers reached a record 8.7 million in August. The company cites solid liquidity, protection against fuel price fluctuations, and an efficient fleet.

AirAsia is seeking additional capital, while Air Transat is cutting costs. In Europe, the crisis could accelerate market consolidation through the takeover of certain routes by groups such as IAG, Lufthansa, or Air France-KLM. Wizz Air has shown interest in TAROM's routes, but the Romanian company says bankruptcy is not being considered. AirBaltic is seeking a strategic investor, and the U.S. procedure could give it the time needed for restructuring and recovery.