With the oil crisis caused by the U.S. strike on Iran now in its third month, the string of smaller and mid-size airlines filing for bankruptcy protection has already begun.
The most high-profile collapse occurred when, at the start of May, low-cost airline Spirit Airlines definitively shut down all operations after earlier efforts to get out of two past bankruptcies.
In other parts of the world, low-cost holiday carrier Magnicharters filed for bankruptcy protection in Mexico City approximately a month after suspending all flights for what it initially hoped would be a period of two weeks.
In China, northwestern regional carrier Joy Air filed for bankruptcy protection and entered the early stage of the restructuring process at the start of the week after canceling all flights back in April.
Zenith Aviation in administration over “cashflow issues, unpaid debtors and historic ownership and management issues”
The latest to enter administration, the British term for bankruptcy protection most closely resembling Chapter 11 in the U.S., is charter carrier Zenith Airlines. Based out of the London Biggin Hill Airport used primarily for charter and general aviation, Zenith marketed short charter flights within the United Kingdom and nearby European countries on a fleet of one Bombardier Learjet 45 and two Learjet 75s planes.
“The company is in an insolvent position due to cashflow issues, unpaid debtors, and historic ownership and management issues,” Paul Hargreaves, the Nexus Corporate Solutions administrator assigned to oversee the case, said in a statement to local press.
Related: Another low-cost airline files for bankruptcy protection
All flights scheduled to run have been canceled since the start of the month while the administrative firm is weighing whether a restructuring process or potential buyout are possible. All 41 flight crew and administrative who worked for the airline have now also been left unemployed while the United Kingdom Civil Aviation Authority suspended Zenith’s AOC pending further action.
“We are assessing the assets of the company, assisting employees with claiming their statutory redundancy entitlements, and looking at options to include potential rescue, or buyout should that be appropriate,” Hargreaves said further.
Zenith Aviation
What happened with Zenith Air, a London charter airline
Zenith was acquired by larger aircraft management and charter group OPUL Jets in 2025 but, after getting dropped by the company in December 2025, operated under the leased AOCs of several other charter airlines.
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The most recent financial information available publicly includes debt of £1.9 million (approximately $2.6 million USD) on revenues of over £14.2 million in March 2025. Debt estimated at the current period range between £3 million and £5 million.
These airlines 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.
- 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: Travel company shuts down and cancels all trips, no refunds
