Another airline files for Chapter 7 bankruptcy, all flights canceled
In addition to the sudden closure of commercial airlines such as Play and Blue Islands, a number of charter and fractional carriers have also filed for bankruptcy in 2025.
Florida-based Verijet and Montana charter airline Corporate Air simultaneously initiated bankruptcy proceedings in October, while Alaska-based Kenai Aviation ceased operations completely a few weeks later in November.
The charter airline connected hubs like Anchorage and Fairbanks with smaller communities in Kenai, Homer and Seward.
“We need capital, we need partners, we need a lifeline,” owner Joel Caldwell wrote in November. “This investor is out there, we just need to find him.”
The latest airline to file for Chapter 7 bankruptcy is Greensboro-based Jet it. While the carrier, which once operated charter and partial flights, has not operated since ceasing all operations in 2023, the filing, filed Dec. 24 in the U.S. Bankruptcy Court for the District of Delaware, is the latest step in a story that ultimately led to liquidation.
Unlike a Chapter 11 filing with the intent to reorganize, a Chapter 7 bankruptcy asks the judge to skip this step and go straight to liquidation. The filing shows that the airline, which started operations in 2022 by selling partial ownership to HondaJet flights, incurred liabilities of more than $36.2 million, including $9.7 million in unsecured claims.
Related: Airline shuts down after losing license, final flights canceled
A fractional airline operates by selling its shares to a company. private jet customers are given a certain number of hours that they can use to request flights operated by airline-supplied crew.
At the time of its launch, Jet It was advertising rates of $1,600 per hour while flying over 18,000 flight hours per year. Although the airline was once the 12th largest private jet operator in the United States, Jet It was also facing significant debt due to the high cost of jet fuel and a declining customer base over time.
The largest creditor remains World Fuel Services, which Jet It owes $735,695, according to the filing. American Express owes more than $600,000, while smaller creditors include PIC Card Services LLC and Jetex Flight Services. Berkshire Hathaway unit FlightSafety claims it was never paid $400,981 for pilot training services the airline provided.
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Spirit Airlines (Spirit Aviation Holdings, Inc.): Application has been made Chapter 11 bankruptcy for the second time 29 August2025.
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Ravn Alaska: Activities were stopped August 2025 after previous Chapter 11 proceedings; ceased flights and was incorporated into other operations such as New Pacific.
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Corporate Air: Application has been made Chapter 11 bankruptcy (restructuring) September 2025 as part of a planned sale Bondoro.
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Play Airlines: The Reykjavik-based airline ceased operations and entered involuntary bankruptcy. September 2025.
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Braathens Airlines: Had to file for bankruptcy and canceled all flights inside September 2025.
