While the prices of jet fuel showed some modest signs of improvement at the start of the month, the difficult situation set off by the U.S.-Israeli strike on Iran has already dealt the final blow to a number of smaller airline companies on top of an already challenging market.
The most high-profile of those took place when, at the start of May, low-cost airline Spirit Airlines shut down for good after two past bankruptcies and multiple attempts at a turnaround for a well-known brand.
In other parts of the world, low-cost holiday carrier Magnicharters filed for bankruptcy protection in Mexico City a month after suspending all flights for what was initially supposed to be a temporary period of two weeks.
Amid very similar problems of high jet fuel prices and low consumer sentiment, Chinese regional Joy Air filed for bankruptcy protection and canceled all flights at the start of April.
Dutch plane manufacturer Maeve Aerospace collapses in bankruptcy
The problems facing the industry do not stop exclusively at airlines. This week, Dutch electric aircraft developer Maeve Aerospace was officially declared bankrupt by a court in The Hague after multiple efforts to raise additional funding ultimately fizzled out.
The Delft-based company, established in 2020 under the earlier name Venturi Aviation, was in the process of developing a 100-seat hybrid-electric regional airliner it dubbed the Maeve Jet MJ 500.
Related: Another airline shuts down after losing license, all flights canceled
The ambitious project caught the attention of major carriers such as Delta Air Lines, which worked with the company in the early development stages. By September 2025, SkyWest also joined the partnership by investing an unspecified amount in the project.
“SkyWest is committed to leading our industry forward, and we’re pleased to invest in Maeve as the leading edge of technological, sustainable advancements for regional aviation,” CEO Chip Childs said at the time.
But according to early reporting of the bankruptcy, Maeve was ultimately declared insolvent by a Dutch court over failure to secure a €20 million funding round, without which it is unable to continue operations or make payments to its creditors.
Maeve Aerospace
What went wrong with Maeve Aerospace, a hybrid-electric plane dream child
Amsterdam-based Cees Advocaten is overseeing the bankruptcy proceedings. The lack of a final product means that the company will almost certainly be shut down rather than attempt restructuring.
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.
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A similar fate befell London-based Ecojet Airlines. British green investor Dale Vince’s initial efforts to build the world’s first zero-emission regional airline never got off the ground once the high costs and complexity of converting the engines in old Twin Otter and ATR 72 aircraft into kerosene versions started to catch up with the company.
The airline filed for the the British equivalent of a Chapter 7 bankruptcy by the end of 2025.
Related: Another low-cost airline cancels all flights for two weeks
