Between the war in Iran and the regular challenges and high financial costs of being in aviation, multiple small airlines in different corners of Europe have filed for bankruptcy or shut down in the last year.
In Russia, the aviation industry has been in a particularly dire state after the economical hit and Western sanctions that occurred when the country’s military invaded Ukraine and set off a full-scale war in February 2022.
One of the last operating regional airlines in the country, Izhavia from the remote Udmurtia region, had its air operator’s license (AOC) revoked by regulators at the start of the month after multiple failed safety incidents and the airline continue to fly an old Yak-42 plane that failed multiple safety audits.
Russian court once again extends insolvency process for bankrupt Transaero Airlines
Reporting from the country showed that a least 30 mid-size and smaller or regional Russian airlines were either at or near bankruptcy at the start of 2026.
Transaero Airlines, an airline launched in 1991 that operated flights to dozens of domestic and international destinations out of two main hubs in Moscow and St. Petersburg, has not operated since 2015 after accumulating more than €1.1 billion in debt at a time when the Russian ruble tanked following the country’s invasion and annexation of Crimea in 2014.
Related: Another airline closes after losing license, cancels all flights
A deal for state-owned flag carrier Aeroflot to acquire 75% of the carrier ultimately fell through and the airline was formally declared bankrupt in 2017.
Formal insolvency proceedings and liquidation, meanwhile, have been getting pushed back for almost a decade. At the start of August, Moscow Arbitration Court once again pushed back the date at which liquidation needs to be completed until September 13, 2026 despite the fact that several major local banks have filed a petition to wind up the process and recoup their losses as creditors.
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“Attempted to hold former executives personally liable for the airline’s debts”: What is happening with Transaero Airlines in 2026
In a report submitted to the court, external insolvency administrator Alexey Belokopyt said that he is continuing to work on identifying and assess the airline’s assets; however, the entire case has been mired in suspicious obscurity as any efforts to hold anyone who was at the helm of the airline when it collapsed accountable kept getting shot down.
“During the bankruptcy proceedings, the court-appointed insolvency administrator attempted to hold former executives personally liable for the airline’s debts under subsidiary liability provisions, arguing that their actions contributed to the insolvency,” reads one local report of the situation. “The court dismissed the claim, citing the expiration of the statutory limitation period.”
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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: While not yet fully shut down, the Mexican low-cost airline canceled all 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.
Related: Ukrainian airline starts flying for first time since invasion
