A major UK freight airline, European Cargo Limited, has collapsed into administration, resulting in all 178 staff being made redundant. The Bournemouth Airport-based carrier appointed Stuart Morris, Robert Fishman, and David Soden from Teneo Financial Advisory Limited as joint administrators on Wednesday.
Financial Pressures Lead to Collapse
A Teneo spokesman stated: "The appointment follows a period of significant financial pressure on the business, driven by reduced flying activity and working capital and fuel cost pressures. The Company has ceased trading and, regrettably, redundancies are being made." Customers, suppliers, and creditors are being contacted urgently by the administrators.
Rise and Fall of European Cargo
The airline gained prominence during the COVID-19 pandemic, acting on orders from the Conservative Party government to transport personal protective equipment from Malaysia. It expanded operations in April 2023, launching three-times-weekly services between Bournemouth and Chengdu, China. By March 2024, it had launched operations from Haikou and increased its fleet to six aircraft.
However, the airline recorded a staggering net loss of $26 million in 2024, alongside an operating loss of $24.2 million. Its latest accounts have yet to be submitted.
Industry-Wide Challenges
European Cargo is not alone in facing difficulties amid the cost of living crisis in 2026. Spirit Airlines is shutting down after failing to secure a $500 million (£368 million) bailout from the Trump administration. Ascend Airways UK, an ACMI airline part of the Avia Solutions Group operating a fleet of seven B737s, announced its closure in April 2026 due to a tough trading environment. Air Antilles, a regional airline in the French Antilles, was ordered dissolved by a court in Guadeloupe in April 2026 after being grounded in December 2025 due to operational and security deficiencies.
