Multiple airlines and adjacent companies in the aviation company have filed for bankruptcy in the months following the U.S.-Israeli strike on Iran and subsequent spike in jet fuel prices.
At the start of June, cargo carrier European Cargo Limited entered administration, resulting in the loss of 178 jobs and what will likely be the liquidation of multiple A340-60 planes in its fleet, according to FlightGlobal.
With a model that converted old Virgin Atlantic liners into freighter planes, the airline was established out of Bournemouth in 2020 after the British government issued an urgent request for a carrier that could be used to transport personal protective equipment from Malaysia during the height of the Covid pandemic.
Irish airplane leasing company Priority 1 goes into liquidation
European Cargo Limited’s business ultimately failed to take off once pandemic-related needs subsided, and in a domino effect after the bankruptcy of the only airline in its portfolio, the Irish plane leasing group and parent company Priority 1 is now also in administration, Irish Independent reported.
The airline, established out of Shannon in 2024, had a fleet of 15 Airbus A340 planes, 82 Trent 500 engines, and 9,000 Airbus A340 spare parts that it leased to various airlines based on their needs.
Related: 15-year-old travel company ends in bankruptcy, cancels all trips
The company was headed by chief executive Dermot Manifold and backed by British aviation investor Doug Brennan and asset manager BlackRock. It acquired European Cargo shortly after getting set up as a new business.
As a private company, Priority 1 has not released the details of its financial situation, but European Cargo entered administration with more than $41.8 million in debt.
Getty
Priority 1 in administration: “Significant working capital constraints, increased fuel costs”
“The Priority 1 Group has experienced a period of sustained financial pressure in recent years resulting in a material deterioration of its financial position,” Teneo Restructuring Ireland, the company assigned to oversee the liquidation process, said in a statement, as Irish Independent reported.
“This has been driven by a number of factors including reduced flying activity, significant working capital constraints, increased fuel costs and ultimately European Cargo Ltd, its UK based cargo airline going into administration.”
More Travel News:
- Airline to launch unusual new flight to Cayman Islands from the U.S.
- There is a very cool Irish version of swimming pigs in the Bahamas
- Unexpected country is most luxurious travel destination for 2026
- Low-cost airline launches easier way to get to Sri Lanka
The next step in the restructuring process is to “explore the sale of the business and assets of the group” and find potential buyers interested in purchasing a “portfolio of aircraft, many of which are airworthy and of distinguished quality,” Teneo Restructuring Ireland added.
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 airline files for bankruptcy protection, cancels flights
