Almost every airline around the world has felt the impact of surging jet fuel crises while many did not survive the spike caused by the U.S.-Israeli strike on Iran.
Mexican holiday carrier Magnicharters, British cargo carrier European Cargo and Swiss regional airline Air Mountain are among the most recent names to either shut down operations or file for bankruptcy protection over the last few weeks while Finnish airline Jetflite became the latest to shut down all of its charter operations at the start of July.
In the South American country of Argentina, low-cost airline Flybondi has been in a protracted crisis as the high cost of jet fuel forced it to keep all but one Boeing 737 plane grounded since June 2026.
Flybondi cancels multiple flights as shutdown appears possible
The airline was launched out of El Palomar Airport (EPA) in Buenos Aires in 2016 and quickly grew into the country’s largest budget carrier through the ultra-low-cost model of luring in travelers with a low base fare.
According to the latest reporting out of Argentina, Flybondi has made widespread route cancelations to Argentine cities such as San Juan, Tucamán and Santa Rosa and not flown a route over the last four days.
Related: Another airline shut down in bankruptcy, to liquidate
Without elaboration on the exact nature of the financial problems, the budget carrier “accumulated debts owed to international suppliers” that have “raised alarms among passengers who are reporting extreme delays and last-minute cancelations in airports.”
A separate report claims that multiple creditors have urged Argentine regulators to step in with an involuntary bankruptcy proceedings as heavy debts go unpaid. The total debt owed is reported to be more than $122.4 million USD to various vendors.
Flybondi
What is going on with Flybondi in July 2026
While Flybondi has offered limited comment on its financial situation, it previously launched an internal redundancy and cost-cutting program that it deemed an “organizational redesign” in March 2026.
Head of communications Lucía Ginzo has also exited the company in May 2026.
Several regional airports in Argentina have asked travelers with booked Flybondi routes in the coming days to routinely check the status of their flight before heading to the airport given the widespread uncertainty around the status of the airline.
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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.
Related: Another bankrupt airline shuts down and cancels all flights
