January 6, 2026, 9:41 am | Read time: 3 minutes
Whether in terms of personal or economic plans, many people have entered 2026 full of hope—perhaps partly because astrological interpretations suggest favorable star constellations. In contrast, a look back shows that 2025 was challenging for various industries. In aviation, for example, several airlines, from small regional carriers to well-known names, couldn’t withstand ongoing cost pressures and had to cease operations. Learn more about this at TRAVELBOOK.
Challenging Year for Aviation in 2025
The structural problems facing airlines are well-known. They arise from high fixed costs amid fluctuating demand, as well as rising fuel and operating expenses. In some cases, lingering debts from the COVID-19 pandemic add to the burden. These challenges pose significant hurdles for smaller airlines and sometimes even for major industry players.
Some airlines faced serious financial difficulties in 2025 but continued operations—sometimes despite already initiated insolvency proceedings. This includes Spirit Airlines, which was listed as one of the world’s worst airlines in a recent ranking by the passenger rights portal Airhelp, TRAVELBOOK reported. The low-cost carrier initiated a restructuring process in August 2025, allowing it to reorganize while continuing flight operations. Other airlines had to throw in the towel in 2025—they are the focus here.
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Examples of Airlines That Failed in 2025
The Icelandic low-cost airline PLAY, which offered flights between Europe and North America from 2021 to September 2025, had to shut down due to financial difficulties. More about this illustrative example of the challenges in the low-cost long-haul segment can be found on the portal “Aero International.” It shows that demand alone is not always enough. High fixed costs for leasing, fuel, and personnel, limited economies of scale, and heavy reliance on connecting traffic through Iceland make the business model particularly vulnerable to demand fluctuations, currency risks, and rising costs. As a result, PLAY could not achieve sustainable profitability despite market interest.
The decline of Silver Airways, which “Aerobuzz” describes in detail, highlights the vulnerability of even established regional airlines. A combination of high debt, low capital reserves, an aging fleet, and failed restructuring ultimately led to a complete market exit. It becomes particularly clear that regional airlines often have limited strategic options: If a restructuring or sale process fails, there is usually no transitional solution, and flights must be discontinued.
List of Passenger Airlines That Didn’t Survive 2025
The following list focuses on passenger airlines that permanently ceased operations in 2025. TRAVELBOOK used information from the travel portal “Wild about Travel” and verified it with official sources. Cargo carriers, pure charter or business flight providers, and airlines that continued to operate despite financial difficulties are not included. In most cases, these airlines’ activities ended with the revocation or surrender of their operating licenses. Due to the large number of airlines worldwide, the list does not claim to be absolutely complete. The airlines are listed alphabetically, not by the timing of their business closure.
- Aerolínea Lanhsa (Honduras)
- Air Albania (Albania)
- Air Dilijans (formerly Aircompany Armenia, Armenia)
- Angara Airlines (Russia)
- Bees Airlines (Romania)
- Blue Islands (Jersey, UK)
- Braathens International Airways (Sweden)
- Eastern Airways (UK)
- Flybig (India)
- Georgian Wings (Georgia)
- Joy Air (China)
- Kenai Aviation (USA)
- Loch Lomond Seaplanes (Scotland)
- Lumiwings (Greece/Italy)
- Mýflug Air (Iceland)
- New Pacific Airlines (USA)
- PLAY (Iceland)
- Ravn Alaska (USA)
- Silver Airways (USA)
- SKS Airways / True Air (Malaysia)
- SmartLynx Airlines (Latvia-AOC)
- Jetstar Asia (Singapore)
- Cham Wings Airlines (Syria)
- MAP Linhas Aéreas (Brazil)
- Vensecar Internacional (Venezuela)