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airBaltic Gets Court Approval for EUR 140M DIP Financing

A U.S. bankruptcy court approved airBaltic’s first-day relief on Sept 16, 2026, unlocking EUR 140M in DIP financing.

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Photo: airBaltic

The United States Bankruptcy Court for the Southern District of New York approved first-day relief requests for Air Baltic Corporation AS (airBaltic) on September 16, 2026, unlocking an initial €140 million (USD 161.5 million) in debtor-in-possession financing to sustain operations during its Chapter 11 restructuring.

The Latvian flag carrier voluntarily filed for Chapter 11 bankruptcy protection on September 14, 2026, citing severe liquidity pressures driven by escalating jet fuel prices and prolonged engine supply chain disruptions. According to a company press release, the court approval ensures the airlines can maintain uninterrupted flight operations, pay employee wages, and honor obligations to customers and critical suppliers as it works to restructure USD 583 million in funded debt and lease liabilities.

Securing debtor-in-possession financing

The initial €140 million draw represents the first tranche of a €350 million (USD 404 million) debtor-in-possession (DIP) financing facility. The lending syndicate providing the capital includes Strategic Value Partners, Barclays, Hayfin Capital Management, Morgan Stanley, and Oaktree Capital Management. The DIP financing carries an approximate interest rate of 12 percent, structured as the Secured Overnight Financing Rate (SOFR) plus 8 percent.

Access to this capital is critical for airBaltic to meet immediate financial obligations. Court filings list Pratt & Whitney as the airline’s largest unsecured creditor, with a claim amount of USD 66.5 million. Additionally, the carrier faces a USD 42.4 million unsecured claim for European Union Emissions Trading System (ETS) payments, which are due by September 30, 2026.

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In a statement following the hearing, airBaltic President and CEO Erno Hildén confirmed the airline’s operational status remains unaffected by the legal proceedings.

“The Court’s decisions are an important first step in our financial reorganisation, allowing us to continue operating while moving forward with the restructuring,” Hildén said. “For our passengers, employees and partners, our focus remains unchanged: we continue flying and serving our customers as normal.”

Latvian Prime Minister Andris Kulbergs also acknowledged the court’s decision, stating the approval means the airline can immediately access financing, begin the restructuring process, and review obligations to creditors.

Fleet downsizing and supply chain pressures

A central component of the airline’s restructuring strategy involves a significant reduction in its operating fleet. airBaltic currently operates 54 Airbus A220-300 aircraft but is targeting a downsized fleet of 36 aircraft by the end of 2026. To achieve this, the carrier is in active discussions with Airbus SE to cancel or defer outstanding deliveries on a USD 3.5 billion order for 40 additional aircraft.

The airline is also negotiating with Pratt & Whitney regarding USD 106.7 million worth of additional engines. Over the past several years, airBaltic has been heavily impacted by Pratt & Whitney PW1500G powder metal inspection mandates and a global shortage of spare engines. These supply chain constraints kept multiple Airbus A220-300 aircraft grounded, severely limiting the airline’s network capacity and revenue generation potential.

The restructuring process is targeted for completion by June 2027.

AirPro News analysis

We note that airBaltic’s Chapter 11 filing highlights the compounding vulnerability of regional operators to global aerospace supply chain bottlenecks. The carrier’s exclusive reliance on the Airbus A220-300 exposed it disproportionately to the PW1500G engine shortages. When combined with macroeconomic shocks, including a reported doubling of jet fuel prices linked to Middle East instability, the airline’s liquidity position became untenable despite a €30 million state loan from the Latvian government in April 2026.

The Latvian government holds 88.37 percent of the airline’s voting rights and signaled prior to the filing that the carrier could not continue under its current business model without fresh capital. The targeted completion date of June 2027 for the court-supervised process suggests a rapid restructuring strategy, but its success will depend heavily on the airline’s ability to successfully renegotiate its multi-billion dollar orderbook with Airbus and resolve its outstanding liabilities with Pratt & Whitney.

Sources: airBaltic Press Release

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Airlines Strategy

United Airlines Fleet Seen Flying: 1,060 Aircraft in the AirPro Atlas

AirPro Atlas data shows 1,060 United Airlines aircraft seen flying from October 9 to November 4, 2026, 82% of them Boeing jets.

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United Airlines Fleet Seen Flying: 1,060 Aircraft in the AirPro Atlas
Photo: AirPro News

This is original reporting and analysis by AirPro News.

More United Airlines aircraft were seen flying this autumn than those of any other US airline in the AirPro Atlas. Between October 9 and November 4, 2026, receivers in the ADSB.lol network picked up 1,060 individual aircraft flying with United flight numbers, ahead of American Airlines with 1,002 and Delta Air Lines with 957.

That puts United at number 1 of the 77 US airlines the Atlas follows, ranked by aircraft seen flying. Southwest Airlines (772) and SkyWest Airlines (517) complete the top five.

These figures are not United’s registered fleet or an official count. They are the aircraft that ADS-B receivers saw operating United flights during the period, among the airliner types the Atlas follows. Aircraft leased with their crews count for the airline whose flight numbers they fly, and regions with few receivers are undercounted.

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A Boeing airline, built around the 737

Of the 1,060 aircraft, 869 were Boeing jets (82.0%) and 191 were Airbus jets (18.0%). No other manufacturer appears in United’s count.

The Boeing 737 family alone accounts for 592 aircraft, or 55.8% of everything seen flying for the airline. The four largest groups are all 737 variants: the 737 MAX 9 (149 aircraft), the 737-900 (146), the 737-800 (136) and the 737 MAX 8 (122). Another 38 were 737-700s.

United’s Airbus flying comes from the A320 family: 67 A321neos, 64 A319s and 60 A320s, 191 aircraft in all.

Widebodies and the 757

Widebody aircraft made up 220 of the total, or 20.8%. The Boeing 787 led with 86 aircraft (53 787-9s, 21 787-10s and 12 787-8s), followed by the 777 with 83 (61 777-200s and 22 777-300ERs) and the 767 with 51 (35 767-300s and 16 767-400s).

The Boeing 757 is still part of the picture: 57 were seen flying for United, 36 of them 757-200s and 21 the longer 757-300. In all, the Atlas counted 18 different aircraft types under United flight numbers.

Eight hubs, one alliance

Wikidata lists eight United hubs: Denver International Airport (DEN), Newark Liberty International Airport (EWR), Washington Dulles International Airport (IAD), George Bush Intercontinental Airport (IAH) in Houston, Los Angeles International Airport (LAX), Chicago O’Hare International Airport (ORD), San Francisco International Airport (SFO) and Antonio B. Won Pat International Airport (GUM) in Hagåtña, Guam. The airline, founded in 1926, flies under the callsign UNITED and is a member of Star Alliance.

AirPro News analysis

The count shows how much of United’s operation rests on a single aircraft family. With 592 of 1,060 aircraft seen flying, the 737 carries more than half of the airline’s activity in the Atlas, and the 737 MAX 9 is the most common type on its own.

The gap at the top of the US market is narrow: United’s 1,060 aircraft against American’s 1,002 and Delta’s 957, so the order could change in a later count as aircraft go in and out of maintenance. Widebodies, at 220 aircraft or 20.8%, are about one in five of the aircraft seen flying for United, and the 787 is the largest widebody group, ahead of the 777.

Explore United’s hubs and fleet on the AirPro Atlas.

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Lufthansa Group Acquires 44.9% Stake in TAP Air Portugal

Portugal selects Lufthansa Group to acquire a 44.9% stake in TAP Air Portugal for €1.025 billion, beating Air France-KLM.

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Lufthansa Group Acquires 44.9% Stake in TAP Air Portugal
Photo: Lufthansa Group

The Portuguese government has selected Lufthansa Group to acquire an initial 44.9% minority stake in state-owned TAP Air Portugal for €1.025 billion, a move that significantly expands the German aviation conglomerate’s footprint in the South Atlantic market.

In a press release issued on October 14, 2026, Lufthansa Group confirmed the selection of its cash-based offer, which outbid rival Air France-KLM. The transaction, which could scale up to a 49.9% stake for a maximum of €1.2 billion, positions Lisbon as a strategic hub for Lufthansa’s network connecting Europe to Brazil and Portuguese-speaking Africa.

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The winning bid and strategic rationale

The decision concludes a competitive privatization process that narrowed to Lufthansa Group and Air France-KLM in April 2026. Both airline groups submitted improved final offers in early October 2026. According to reporting by TravelMole, the Portuguese government ultimately favored Lufthansa’s proposal because it was approximately 16% higher than the competing bid and structured entirely in cash, whereas Air France-KLM offered a combination of cash and shares.

“TAP Air Portugal is a strong and profitable airline, our long-standing partner in Star Alliance and internationally successful as a leading carrier on South Atlantic routes,” said Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG. “With today’s decision, the Portuguese government has paved the way for TAP Air Portugal to continue this success story together with Lufthansa Group.”

A statement from the Portuguese government highlighted the preservation of the airline’s national identity, describing Lufthansa as a strategic partner for growth that will maintain Lisbon Airport (LIS) as a central hub.

European consolidation and the Lusophone corridor

TAP Air Portugal operates an all-Airbus mainline fleet of over 90 aircraft. In 2025, the carrier transported 16.7 million passengers and posted a net profit of €4.1 million. The airline is highly coveted for its “Lusophone corridor,” providing extensive network connections between Europe, Brazil, and Portuguese-speaking African nations.

For Lufthansa Group, the acquisition aligns seamlessly with TAP’s existing membership in the Star Alliance. This avoids the complex integration process that would have been required to transition the Portuguese flag carrier to SkyTeam under Air France-KLM ownership.

Lufthansa already maintains a substantial presence in the country, operating 353 weekly flights to six Portuguese destinations. The group’s capacity in Portugal has increased by 75% compared to 2019 levels. Furthermore, Lufthansa Group employs over 500 skilled professionals in the country, a figure expected to surpass 1,000 by 2030 following the June 2026 groundbreaking of a new Lufthansa Technik facility in Santa Maria da Feira near Porto.

TAP’s path to privatization and next steps

Founded in 1945, TAP Air Portugal has experienced multiple ownership structures over the past decade. The airline was sold to a private consortium in 2015 but faced severe financial challenges during the COVID-19 pandemic, leading the Portuguese state to fully renationalize the carrier in 2020. The current privatization framework was designed to sell a minority stake of up to 49.9% while retaining 50.1% state control, with 5% of the shares reserved for employees.

Lufthansa Group, the Portuguese state holding company Parpública, and the Portuguese government expect to finalize and sign the transaction documents by the end of 2026. Official completion of the deal is targeted for 2028, pending regulatory approvals from the European Commission and relevant national aviation and competition authorities.

AirPro News analysis

Lufthansa Group’s successful bid for TAP Air Portugal marks another major milestone in the rapid consolidation of the European aviation market. Following its recent integration of Italy’s ITA Airways, Lufthansa is systematically absorbing the continent’s remaining independent national carriers, expanding its European market share to an estimated 12%. Securing TAP is particularly strategic because it neutralizes Air France-KLM’s ambitions in the South Atlantic while cementing Star Alliance dominance on routes to South America. The European Commission will likely scrutinize the deal closely, but the minority stake structure and the preservation of state control may help smooth the regulatory path compared to a full takeover.

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CADE Approves American Airlines $100M Stake in Azul

Brazil’s CADE approved American Airlines’ US$100M investment in Azul S.A., granting an 8% minority stake with governance conditions.

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CADE Approves American Airlines $100M Stake in Azul
Photo: Azul Airlines

Brazil’s antitrust regulator has unanimously approved a US$100 million investment by American Airlines, Inc. into Azul S.A., granting the US carrier an approximate 8 percent minority stake in the Brazilian airline. The October 7, 2026, decision by the Administrative Council for Economic Defense (CADE) finalizes a capital injection critical to Azul following its exit from US Chapter 11 bankruptcy restructuring.

The approval, detailed in a CADE press release, is conditional upon a legally enforceable Merger Control Agreement (ACC) designed to implement governance and information safeguards. The transaction creates an unusual ownership structure in the highly concentrated Brazilian aviation market, as American Airlines now joins its primary domestic competitor, United Airlines, Inc., in holding an 8 percent equity interest in the same carrier.

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Regulatory review and competitor opposition

The path to regulatory clearance involved significant scrutiny following objections from a rival airline group. On July 31, 2026, CADE’s General Superintendence (SG-CADE) initially issued a favorable opinion on the American Airlines investment, recommending approval without restrictions. This technical clearance was subsequently appealed by Abra Group Limited, the parent company of Brazilian carrier Gol Linhas Aéreas.

Gol maintains a long-standing commercial partnership with American Airlines. Abra Group argued that the investment required a deeper review by the CADE tribunal to assess whether the financial tie-up could harm competition on international routes between the US and Brazil or lead to coordinated effects among competitors.

The tribunal review specifically scrutinized competitive dynamics on key international corridors, including flights from São Paulo and Rio de Janeiro to Miami and Orlando. Regulators ultimately concluded that the investment would not eliminate competition in these markets. CADE noted that other major carriers, including LATAM Brasil and Delta Air Lines, continue to operate robust schedules on overlapping routes.

While dismissing the core anti-competitive concerns, the tribunal mandated the ACC to formalize boundaries around the partnership. Camila Cabral Pires Alves, the reporting commissioner for CADE, outlined the regulator’s rationale for the conditions.

“Minority stakes can produce competitive effects through different channels. It is necessary to understand the economic interest created by the investment, the influence rights associated with the participation, the information flows, and the concrete structure of rivalry in which these links are inserted.”

The formal decision and the associated ACC are expected to be published in October 2026, at which point the governance and information safeguards will become legally enforceable.

Azul’s financial restructuring and US airline investments

The US$100 million investment by American Airlines is part of a broader US$200 million capital injection designed to stabilize Azul. The Brazilian carrier emerged from US Chapter 11 bankruptcy protection on February 20, 2026, after completing a major financial restructuring to reduce debt and lease obligations.

The first half of that capital injection came from United Airlines. On February 11, 2026, CADE approved United Airlines’ move to increase its own minority stake in Azul to approximately 8 percent. Both investments were structured as integral components of Azul’s Chapter 11 reorganization plan, providing the airline with fresh equity capital to compete in a domestic market heavily concentrated among LATAM Brasil, Gol, and Azul.

The American Airlines investment is being executed through the exercise of subscription warrants, specifically identified as AZUL11 and AZUL19. The completion of this transaction solidifies American Airlines’ strategic presence in the Latin American aviation market, balancing its existing commercial relationship with Gol against a new equity position in Azul.

AirPro News analysis

The CADE approval cements a rare and complex market dynamic where two of the largest US legacy carriers hold identical minority equity positions in the same foreign operator. United Airlines and American Airlines fiercely compete on routes connecting the US and Latin America, yet both have now capitalized Azul’s post-bankruptcy balance sheet.

For American Airlines, the investment secures a strategic foothold in Brazil and hedges its regional exposure alongside its existing commercial ties with Gol. For Azul, the combined US$200 million from American Airlines and United Airlines provides essential liquidity to stabilize operations and fund network growth after its Chapter 11 restructuring. We expect CADE’s mandated information firewalls will be heavily scrutinized by industry observers to ensure neither US carrier gains an asymmetric advantage or access to proprietary data in the Brazilian market.

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