After Christmas, a string of airlines were hit hard by macroeconomic factors, such as the Iran and US war that began in February. Eleven airlines have collapsed into administration, with holidays cancelled for tourists and holidaymakers.
European Cargo Latest to Fail
The latest airline to cease operations was European Cargo, based at Bournemouth International Airport, costing about 180 jobs. Bosses blamed rising fuel prices for the administration. This weekend, it emerged that airlines will have to spend an extra $100 billion on jet fuel this year, with fares inevitably rising after the war with Iran choked off oil supplies.
With jet fuel prices expected to be 70% higher across 2026, industry body Iata said collective industry profits worldwide would halve to $23 billion. Some carriers would struggle to survive the fuel price shock caused by the closure of the Strait of Hormuz in March. Willie Walsh, Iata's director general, said: "High oil prices will inevitably mean higher ticket prices. There's just no way to avoid that."
Full List of Collapsed Airlines
Aer Lingus UK
On 8 January 2026, Aer Lingus announced it would close its Manchester base at the end of March 2026, ending all Aer Lingus UK operations. The airline stated that while the Manchester base was profitable, margins were significantly below other comparable parts of the business.
Air Antilles
Air Antilles shut down after a court in Guadeloupe ordered the regional carrier into liquidation. Founded in 2002, it connected French Caribbean islands using ATR 42, ATR 72 and DHC-6 Twin Otter aircraft.
Ascend Airways
The airline operated aircraft from Southend and Gatwick airports for customers such as Tui Airways and Oman Air. Rising fuel prices linked to the Middle East conflict were cited as a key factor. A spokesperson said: "These external pressures have compounded the structural challenges of operating a UK AOC within the European [wet-lease] market."
Dove Airlines
Dove Airlines Private Limited entered voluntary liquidation after nearly two decades in India's charter aviation sector. The Kolkata-based carrier ceased commercial flight operations in 2022 and formally initiated liquidation proceedings on 5 January 2026.
Ecojet
Ecojet Airlines, based in Edinburgh and founded by Ecotricity's Dale Vince OBE and pilot Brent Smith, launched in 2023 with ambitions to be "the world's first Electric Airline." It planned short-haul UK flights powered by hydrogen-electric technology but ultimately failed.
European Cargo
The freight firm collapsed weeks after unveiling a "transformational" five-weekly China service at Teesside International Airport. It had transported PPE from Malaysia to the UK during the COVID-19 pandemic.
Lufthansa CityLine
With just 48 hours notice, Lufthansa CityLine ceased flying on April 18, citing rising fuel prices linked to the Iran war and labour disputes. Employees had taken strike action for five consecutive days before the closure.
Magnicharters
In May, Mexican low-cost carrier Magnicharters filed for bankruptcy protection in Mexico City a month after suspending all flights for what it hoped would be a two-week period.
Spirit Airlines
Spirit Airlines shut down after failing to secure a $500 million bailout from the Trump administration. A passenger told the BBC she received a notification through Spirit's app in the middle of the night that all flights were cancelled, initially thinking the app was hacked.
Tailwind Air
Tailwind Air, based at Westchester County and Sikorsky Memorial airports, connected the Northeast with Manhattan. After struggling to turn a profit, it transitioned to charter-only in 2024 and filed for Chapter 11 protection on January 15, 2026.
Zenith
Zenith Aviation Limited, a private jet operator based at Biggin Hill in London, entered administration in May. The company operated Bombardier Learjet 75 and Challenger 605 aircraft. Paul Hargreaves of Nexus Corporate Solutions Limited was appointed administrator on May 15.
