It is not an easy time to be in aviation and, if one is a smaller regional carrier, this becomes even more so the case.
On top of the regular challenges around market crowding on many popular routes and supply chain availability, the skyrocketing price of jet fuel has pushed many small and mid-sized carriers into a very difficult financial situation.
Along with the high-profile collapse of Spirit Airlines in the U.S., other names that filed for bankruptcy or shut down since the U.S. strike on Iran include Mexican vacation airline Magnicharters, Chinese regional airline Joy Air and British carriers Zenith Aviation and European Cargo.
AirAsia Philippines says “all flights remain fully operational” after early bankruptcy reports
The local branch of the Malaysian low-cost giant AirAsia, AirAsia Philippines racked up a bill of PHP270 million (roughly $4.39 million USD) in airport fees.
With the Civil Aviation Authority of the Philippines (CAAP) setting a June 6 deadline for the airline to either settle its debt or begin shutting down operations, a number of outlets initially reported that the carrier was facing bankruptcy-related collapse.
AirAsia Philippines called these reports “entirely false” and as “not reflect[ing] the reality of the business or operations of the airline.”
Related: Another airline files for bankruptcy and cancels all flights
“All Z2 flights remain fully operational, with flights and services continuing as scheduled across its network, subject to normal operational considerations such as weather and other standard factors affecting airline operations,” the airline said in a further statement that also called the reports as a “deliberate smear campaign that has long been occurring aimed at undermining fair competition in the Philippine aviation sector.”
A CAAP representative told local Philippine outlet InsiderPH that AirAsia had made the payment as of the morning of June 4 and was “current […] as of today.” The cease-and-desist letter was sent on June 2.
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“We intend to deploy more aircraft into our operations in the Philippines”: AirAsia
The airline had been accumulating debt since the dropoff in travel during the covid-19 pandemic and had brought its debt down from approximately $14.5 million USD to $4.7 million USD before missing a few deadlines to make the final payments.
“Looking ahead, we are incredibly invested in the development of new airport infrastructure across the country, including in Ninoy Aquino International Airport (MNL) and Mactan-Cebu International Airport (CEB), which will unlock greater opportunities for growth, improve connectivity, enhance operational efficiency and enable us to lower costs even further,” AirAsia Group co-founder Tony Fernandes said in a further statement.
The airline plans to add planes, he said.
“As we expand our fleet and aircraft order book to become the first narrowbody global low-cost network carrier, we intend to deploy more aircraft into our operations in the Philippines.”
Airlines that filed for bankruptcy in 2026:
- Spirit Airlines: The largest airline shutdown of the year occurred when Spirit Airlines canceled all remaining flights on May 2. Although the airline had filed for Chapter 11 protection twice before, the skyrocketing price of jet fuel dealt the final blow to its operations.
- Magnicharters: The Mexican low-cost airline canceled all of its flights until May 2026 in a shutdown that left thousands stranded.
- Starflite Aviation: Houston-based Starflite Aviation had its AOC license revoked in March 2026, amid FAA claims that owners falsified pilot training records to bypass safety audits.
- AlpAvia: Slovenian charter airline AlpAvia also shut down in March 2026 over financial problems.
- H-Bird: Charter airline H-Bird was declared bankrupt by a Swedish judge after losing its operating license at the end of 2025.
Related: Another airline prepares to shut down and cancel all flights
