The string of airline bankruptcies that began following the U.S. strike on Iran and subsequent spike in jet prices is not over yet.
The most prominent collapse occurred at the start of May when well-known low-cost airline Spirit Airlines canceled all of its flights and shut down for good. This was despite much industry hope for a last-minute Hail Mary, given the carrier’s two past bankruptcies and its well-known brand.
Low-cost holiday carrier Magnicharters also filed for bankruptcy protection in Mexico City last month after suspending all flights for what was initially supposed to be a temporary period of two weeks in April.
Other global aviation names that recently either filed for bankruptcy protection or shut down entirely in recent weeks include Chinese regional Joy Air and British carrier Zenith Aviation.
The financial situation is not limited to commercial airlines. Maeve Aerospace, a Netherlands-based hybrid-electric airplane developer that initially caught the attention of big names such as Delta Air Lines, was also declared insolvent by a Dutch court at the start of June.
British cargo airline European Cargo enters administration
The latest non-commercial airline to enter administration, or the British equivalent of Chapter 11 bankruptcy, is cargo carrier European Cargo Limited.
The court on June 3 appointed Stuart Morris, Robert Fishman, and David Soden of Teneo Financial Advisory Limited as joint administrators of European Cargo, a local Bournemouth outlet reported.
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The airline was established in 2020 out of Bournemouth, a smaller city approximately 100 miles southwest of London. The United Kingdom government issued an urgent request for a carrier that could be used to transport personal protective equipment from Malaysia during the height of the Covid pandemic.
In response, parent company European Aviation Air Charter registered in England and Wales to convert several old A340-600 planes formerly used by Virgin Atlantic into freighter planes.
What is happening with European Cargo, a cargo airline out of Bournemouth
European Cargo was used by the United Kingdom’s National Institutes of Health to deliver equipment to various parts of the country throughout the pandemic.
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.
“We are your innovative air freight partner — pioneering a one-of-a-kind air cargo operation,” European Cargo describes itself on its website.
“We deliver agile, efficient and long-range air freight services, with our fleet of unique A340s. Flying anywhere in the world, from regional UK hubs.”
The airline has not put out a statement on its administration; as a result, the details of the situation and whether it attempts to restructure are not currently clear.
The Daily Echo in Bournemouth reports that at least two employees of the airline reported being fired during a Microsoft Teams call.
Related: Another low-cost airline files for bankruptcy protection
