The travel industry has been thrown into turmoil following the closure of the Strait of Hormuz in February, triggered by attacks from the United States and Israel. This vital waterway, responsible for transporting roughly 20% of the world's oil and liquefied natural gas, has led to global fuel shortages. As a result, soaring airfares, longer flight routes, and widespread delays have caused a string of airlines to collapse, including four from the UK.
European Cargo
European Cargo, a cargo carrier based at Bournemouth International Airport, recently became the latest airline to enter administration, just months after expanding its UK operations. The company stated that after its sale by former parent company European Aviation, which offloaded its 50.01% shareholding in November 2024, it suffered from rising fuel costs and reduced flight demand. Flight-tracking data shows the airline halted operations before filing for administration on June 3, with 178 jobs already cut.
Administrators said: 'The company has ceased trading and, regrettably, redundancies are being made. Affected employees are being contacted as a priority and the joint administrators are focused on supporting them through this process, while also engaging with customers, suppliers, creditors and other key stakeholders.'
Ascend Airways
In April, Ascend Airways, a British ACMI and charter airline, surrendered its Air Operator's Certificate and ceased all operations. The wet-lease carrier did not sell seats directly to passengers but served as a short-term supplier of fully-crewed planes to other airlines. Ascend, which operated flights from Gatwick and Southend Airports, had clients including TUI, Oman Air, and Air Sierra Leone.
A company spokesperson cited the ongoing Middle East conflict and rising fuel prices as creating a 'challenging outlook' for the summer season. They added: 'These external pressures have compounded the structural challenges of operating a UK AOC within the European wet-lease market. A lack of reciprocal wet-leasing rights for UK carriers, combined with a higher cost base, has made the UK certificate a more expensive and less agile option compared to EU AOCs.'
Spirit Airlines
US budget airline Spirit Airlines shut down last month after failing to secure a $500m bailout from the Trump administration. Spirit was recovering from its second bankruptcy filing when the US-Israel war in Iran began, but the surge in jet fuel costs pushed it over the edge. The collapse stranded thousands of passengers across the US, with Delta, United, and JetBlue offering rescue fares after Spirit cancelled all flights and halted customer service.
Spirit said it would automatically refund passengers for flights purchased with a credit or debit card, but those who booked using vouchers or points would have compensation determined by a bankruptcy court. Former CEO Dave Davis said: 'In March 2026, we reached an agreement with our bondholders on a restructuring plan that would have allowed us to emerge as a go-forward business. However, the sudden and sustained rise in fuel prices in recent weeks ultimately has left us with no alternative but to pursue an orderly wind-down of the company.' Transportation Secretary Sean Duffy disputed this, stating Spirit was 'in dire straits long before the war with Iran.'
Zenith Aviation
UK charter airline Zenith Aviation Limited went into administration in May, causing 41 job losses. The airline, based at London Biggin Hill, provided private jet charter, aircraft management, and engineering services. Administrator Paul Hargreaves of Nexus Corporate Solutions Limited said the company was in an 'insolvent position due to cashflow issues, debtors not paying, and historic ownership and management issues.' He added that they are assessing assets, assisting employees with redundancy claims, and exploring potential rescue or buyout options.
EcoJet
EcoJet Airlines, an Edinburgh-based startup aiming to become the world's first electric airline, entered liquidation last month without ever carrying a passenger. Founded in 2023 by green energy industrialist Dale Vince, EcoJet hoped to launch routes between Edinburgh and Southampton and expand across Europe, converting aircraft to hydrogen-electric power to save 90,000 tonnes of carbon emissions annually. After failing to secure £20m in funding, these plans are on hold.
A spokesperson said: 'EcoJet was a start-up business and has no material assets. The members have elected to fund the liquidation process to ensure that the company's employees receive their full statutory entitlements.' Vince remains 'committed to electrifying all forms of transport,' calling aviation 'the last frontier and the hardest.'
Maeve Aerospace
Dutch electric aircraft developer Maeve Aerospace was declared bankrupt on May 28 by a court in The Hague after failing to secure a €20m funding round. The hybrid-electric regional startup was developing the Maeve Jet, a 76-100-seat hybrid-electric regional airliner. Major US carriers like Delta and SkyWest worked with the company, with SkyWest investing an undisclosed amount in 2025. SkyWest CEO Chip Childs said: 'SkyWest is committed to leading our industry forward, and we're pleased to invest in Maeve as the leading edge of technological, sustainable advancements for regional aviation.'
Magnicharters
Low-cost Mexican carrier Magnicharters collapsed in May, filing for bankruptcy protection in Mexico City around a month after suspending all flights. The airline initially blamed 'operational problems' for the cancellations, claiming suspensions would last two weeks. Magnicharters has not released any official public statements regarding its bankruptcy.
Jetflite
Finnish airline Jetflite is preparing to shut down operations as of this month. The charter carrier, launched in 1980 from Helsinki, will start employee consultation proceedings on June 8 and is expected to let go of 53 employees across flight operations. Jetflite, part of the Wihuri Aviation group, operates charter routes, ambulance flights, and transportation services. A company statement read: 'The negotiations concern the planned discontinuation of the above-mentioned businesses and the potential termination of employment of the associated personnel. The decisions under consideration are driven by the prolonged unprofitable performance of these businesses.'
Air Antilles
Last month, travellers were left stranded in the French Caribbean after a court ordered the permanent liquidation of Air Antilles at the end of April. The French regional airline, based at Pointe-à-Pitre International Airport in Guadeloupe, served the French Caribbean for almost 24 years, connecting islands like Martinique, Saint Martin, and Saint Barthélemy. The firm entered administration after heavy financial losses and revocation of its operating licence, with estimated total debt of approximately €56m.
Louis Mussington, chairman of Air Antilles's board of directors, explained the closure resulted from rising fuel prices, maintenance costs, and post-pandemic passenger recovery challenges, calling it a 'bitter pill to swallow.' He added: 'Liquidation pronounced by the commercial court is a hard blow for the Collectivité but also for the French West Indies, which are deprived of healthy competition and air services that would have boosted the economy of our islands.'
Lufthansa Cityline
Lufthansa shut down its subsidiary airline CityLine in April, citing 'significantly increased kerosene prices' following the crisis caused by the Iran war. The German carrier said it would permanently remove the 27 aircraft used by its regional operation, cutting 20,000 short-haul flights from its summer schedule. The decision took effect on April 18 to reduce losses. Till Streichert, CFO of Lufthansa Group, called the move 'unavoidable,' blaming rocketing fuel costs and geopolitical instability, and described the closure as a 'painful step.'
