Since the start of the on Iran war, a number of airlines have been affected by the skyrocketing price of jet fuel to the point of no longer being able to stay in business. The largest airline shutdown of the year occurred when Spirit Airlines cancelled all remaining flights on 2 May after succumbing to the rising cost of fuel caused by the crisis in the Middle East
Now, the International Air Transport Association, is forecasting that carriers, especially low-cost airlines around the world, will be in similar jeopardy The airline body slashed its projection for global airline profit in 2026 down to half of that in 2025, to $23 billion versus $45 billion. Even as traffic is expected to rise and airfare margins to be greater, the 40% higher cost of jet fuel is expected to drain profits.
Airlines that have gone bust
Charter carrier Zenith Airlines has cancelled flights since early June while the administrative firm is weighing whether a restructuring process or potential buyout is possible. All 41 flight crew and administrative personnel have now also been left unemployed, and the United Kingdom Civil Aviation Authority suspended Zenith’s AOC pending further action.
Dutch aircraft developer Maeve Aerospace collapsed at the start of June after failing to meet a €20 million funding round, ending an ambitious effort to bring a hybrid-electric regional aircraft to the market. Maeve had drawn interest from several airlines, including Delta Air Lines, Japan Airlines and SkyWest Airlines.
On 3 June, Bournemouth-based cargo carrier European Cargo Limited was also declared insolvent by a British court. The company, known for converting former passenger aircraft into freighters and operating Airbus A340 cargo aircraft, played a role in transporting PPE to the UK during the Covid-19 pandemic.
In Finland, charter carrier Jetflite launched employee consultation proceedings on 8 June on plans to discontinue most of the company’s business activities and potentially lay off the affected staff, citing prolonged losses and a changing operating environment.
The Mexican low-cost airline Magnicharters formally filed for bankruptcy protection in May.
The Federal Aviation Administration (FAA) issued an emergency order immediately revoking the Air Carrier Certificate (AOC) of StarFlite Aviation of Houston, Texas because the operator’s management personnel knowingly falsified pilot training records to bypass safety audits.
In China, northwestern regional carrier Joy Air filed for bankruptcy protection and entered the early stage of the restructuring process after cancelling all flights in April.
Slovenian charter airline AlpAvia permanently ceased operations in March 2026 after having its Air Operator Certificate (AOC) revoked by regulatory authorities due to severe financial problems.
Maldives-based BeOnd has cancelled all flights between Maldives and Europe until October 2026. Established in 2022 as an airline with an Airbus A319 configured with all-business-class seats, BeOnd had lofty plans of growing into the main airline for travelers headed to the Maldives.
Air Antilles, the French Caribbean regional carrier that formerly operated inter-island flights between Guadeloupe, Martinique, Saint Barthélemy, Saint Martin, and other regional destinations, has permanently shut down in May. It has not operated any flights since December 2025.
