Three airlines have entered administration or liquidation so far in 2026, leading to the cancellation of all their flights and stranding thousands of passengers.
EcoJet Enters Voluntary Liquidation
UK-based EcoJet, which launched in 2023 aiming to pioneer electric air travel, has collapsed into voluntary liquidation. The carrier retrofitted aircraft with hydrogen-powered electric engines and planned inaugural flights from Edinburgh to Southampton in 2024, with expansion to mainland Europe and long-haul routes. Opus Restructuring now serves as liquidators following the February decision. EcoJet founder Dale Vince OBE, previously of Ecotricity, vows to continue pushing for electrified aviation.
Royal Air Philippines Faces Administration
Royal Air Philippines, a budget carrier operating since 2018 to destinations across Asia including China, Cambodia, and South Korea, has spiraled into administration. Originally a charter service from 2002, it transitioned to scheduled flights using new Airbus A319 and A320 jets. Between January and March 2026, around 4,000 flights were canceled. The airline is processing refunds for affected passengers. A statement on its website prior to shutdown noted: “We are working on providing refunds and hope to resume flights at an unspecified date in the future. Thank you for your patience and understanding. We eagerly anticipate welcoming you aboard soon.”
Dove Airlines Shuts Down Operations
India’s Kolkata-headquartered Dove Airlines entered voluntary liquidation in January 2026. The carrier halted flights in 2022 after creditors seized its last Cessna Citation aircraft. Despite years of insolvency battles and failed investment bids, it proceeded under the Insolvency and Bankruptcy Board of India.
Iran Conflict Fuels Industry Strain
Soaring oil prices from the Iran crisis exacerbate pressures on remaining airlines, with jet fuel costs surging dramatically. On April 17, Air Canada announced suspension of flights to New York’s JFK International Airport through summer due to shortages and doubled fuel prices. Services from Toronto and Montreal to JFK end June 1 and resume October 25, while routes to LaGuardia and Newark continue. The carrier will offer alternatives to impacted passengers.
“As jet fuel prices have doubled since the start of the Iran conflict and some lower profitability routes and flights are no longer economic, we are making schedule adjustments accordingly,” an Air Canada spokesman stated.
Jet fuel averaged $4.32 (£3.19) per gallon on Thursday, up from $2.50 (£1.84) before the conflict, according to Argus Media. Oil prices fell over 10% on Friday after Iran reopened the Strait of Hormuz to commercial tankers.
Fuel and labor dominate airline expenses. Delta Air Lines reported an extra $2 billion in second-quarter fuel costs this month. Carriers like JetBlue and United Airlines raise baggage fees and cut services to offset hikes.
In an interview, International Energy Agency director Fatih Birol warned that Europe holds “maybe six weeks” of jet fuel reserves, signaling the global economy’s “largest energy crisis.”
