While the collapse of Spirit Airlines at the start of May continues to dominate headlines as the most high-profile airline shutdown of 2026, a number of other small airlines around the world have also seen their finances fall to the point of having to file for bankruptcy and cease operations.
Mexican holiday carrier Magnicharters also filed for bankruptcy protection in Mexico City in May while British cargo airline European Cargo entered administration, which is the equivalent of bankruptcy in the United Kingdom, at the start of June.
Maeve Aerospace, a Netherlands-based hybrid-electric airplane developer that was once treated like a sustainable aviation wunderkind by investors, was declared insolvent by a Dutch court at the start of June while Irish airplane leasing company Priority 1 also entered administration last week.
Air Mountain declared bankrupt by Switzerland court
The latest airline to be ruled bankrupt by a judge in Switzerland is charter airline Air Mountain.
Established out of Sion in southwestern Switzerland for the 2021 ski season, Air Mountain operated on a business model of flying wealthy travelers to The Alps and its Valais region from cities such as Geneva, London, Rome and St. Tropez.
Related: Another plane company enters bankruptcy, will liquidate
At the start of June, the charter airline was declared bankrupt by the Court of Sion. Efforts to appeal the decision have ultimately not panned out and, on June 10, the Swiss Federal Office of Civil Aviation revoked the airline’s air operator’s license (AOC).
As a result, more than 30 flights scheduled for Sion Airport (SIR) through the summer of 2026 have been canceled permanently as two of Air Mountain’s eight-seat Beechcraft King Air B200 planes remain parked and seized by creditors.
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What is happening with Air Mountain airline now
Air Mountain Director Raphaël Délèze said to local news outlet RTS that the airline had presented a restructuring plan earlier in the year but was hit by bankruptcy at the worst possible time given that the delay of the the ski season for aircraft maintenance prevented it from bringing in the funds to make a dent on the growing dent.
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Air Mountain also worked with local Alps tour operator VT Vacances in La Chaux-des-Fonds.
Director Stéphane Jayet said to Swiss outlet ArcInfo that, as a result of the cancelation of all Air Mountain flights, it is now looking for a foreign airline to take over service to the ski town high up in the Jura Moutains.
Airlines that filed for bankruptcy in the first half of 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 airline files for bankruptcy protection, cancels flights
