By Between the war in Iran and the typical challenges and high costs of 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 economic hit and Western sanctions that followed the country’s military invasion of Ukraine and subsequent full-scale war in February 2022.
One of the last operating regional airlines in the country, Izhavia, based in the remote Udmurtia region, had its air operator’s license (AOC) revoked by regulators at the start of the month. This came after multiple failed safety incidents and the airline’s continued flying of an old Yak-42 plane that failed multiple safety audits.
Russian court again extends insolvency process for bankrupt Transaero Airlines
Reporting from the country showed that at least 30 mid-sized and smaller or regional Russian airlines were either in or near bankruptcy at the start of 2026. The situation was similarly dire in 2024, Newsweek reported at the time.
Transaero Airlines, launched in 1991, operated flights to dozens of domestic and international destinations out of two main hubs in Moscow and St. Petersburg. The carrier has not operated since 2015. It accumulated 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 Transaero was formally declared bankrupt in 2017.
Formal insolvency proceedings and liquidation, meanwhile, have been repeatedly pushed back for almost a decade. At the start of August, Moscow Arbitration Court once again pushed back the date by which liquidation must be completed to Sept. 13, 2026.
This is despite the fact that several major local banks filed a petition to wind up the process and recoup their losses as creditors, RuAviation reported.
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“Attempted to hold former executives personally liable for the airline’s debts”: Transaero Airlines in 2026
In a report submitted to the court, external insolvency administrator Alexey Belokopyt said he continues to identify and assess the airline’s assets, Aviation.Direct reported. The entire case has been mired in suspicious obscurity, however, as efforts to hold accountable anyone who was at the helm of the airline when it collapsed 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: The Houston-based carrier had its AOC license revoked in March 2026, amid FAA claims that owners falsified pilot training records to bypass safety audits.
- AlpAvia: The Slovenian charter airline shut down in March 2026 due to financial problems.
Related: Ukrainian airline starts flying for first time since invasion
