In the last month, budget airlines such as Play and Braathens as well as regional charter carriers like Verijet and Kachina Air have all ended up having to file for bankruptcy in a market dominated by fluctuating travel spending and increased competition.
In the case of the Reykjavik-based Play, competitors like Condor Airlines had to step in and offer rescue fares after thousands of travelers were left stranded at airports all over Europe after the latter airline had to abrupt shut down all operations after running out of funds.
Travelers were told to “check flights with other airlines” and try to obtain refunds from their insurance or credit card as the bankrupt airline would not be able to provide them.
Eastern Airways shuts down operations, hundreds of jobs at risk
A month later, yet another European airline has left its customers stranded now that the United Kingdom-based budget carrier Eastern Airways filed a notice of intention to appoint an administrator.
While not yet officially in bankruptcy, Eastern Airways is on the brink of it as the British legal procedure is used to buy 10 days during which the company can seek restructuring options while avoiding liquidation and legal action from creditors.
Related: Delta Air Lines to bet very big on Saudi Arabia travel
Based out of Humberside Airport (HUY) in the East Midlands, Eastern Airways was founded in 1997 and ran flights to cities in northern England and Scotland as well as some routes to London Gatwick and Cornwall.
As first reported by British newspaper The Independent, hundreds of flight attendants, pilots and other Eastern Airways employees are set to lose their jobs as the future of the airline looks increasingly uncertain.
Shutterstock
“Do not go to the airport as flights will not be operating”
“Eastern Airways, which operated regional services from airports across the United Kingdom, has suspended operations,” British Civil Aviation Authority (CAA) said in a statement to passengers on Eastern Airways on Oct. 27. “All Eastern Airways operated flights are canceled. Therefore, please do not go to the airport as flights will not be operating.”
Airlines that filed for bankruptcy in 2025
- Ravn Alaska — ceased operations in August 2025 after earlier Chapter 11 proceedings; shut down flights and folded into other operations.
- Spirit Airlines: Filed for Chapter 11 bankruptcy for the second time on August 29, 2025.
- Play Airlines: Filed for bankruptcy procedures in Iceland on September 29, 2025, canceled all flights.
- Braathens Airlines: Filed for bankruptcy for its Airbus operations in Sweden on September 30, 2025.
- Verijet: Filed for Chapter 7 bankruptcy in October 2025, cancelled all flights and ceased operations.
- Kachina Air, Inc. — filed for Chapter 11 bankruptcy on October 24, 2025.
Some of the flights that are currently marked as canceled include routes between Humberside and Wick and Aberdeen in Scotland.
The Independent also reports that “ticket sales, which continued until noon on Monday, have ceased” while “the aircraft have been returned to leasing companies.”
More on travel:
- Major airline launches surprising flight between Las Vegas and Paris
- United Airlines CEO gives stark warning on Olympic Games
- The highest rooftop in Barcelona is in a surprising place
- US government issues sudden warning on Switzerland travel
Also providing charter flights to several local sports teams, Eastern Airways posted a loss of £19.7 million ($26.27 million USD) in the year between March 2023 and 2024 for a total loss of over £25.97 million ($34.63 million USD).
In response to the sudden cancelations, local train operators LNER, ScotRail, TransPennine Express and Northern Railway announced that they will waive ticket fees for those with a canceled flight.
“Eastern Airways customers are therefore urged to make their own alternative travel arrangements via other airlines, rail or coach operators,” the CAA said further.
Related: Another regional airline files for Chapter 11 bankruptcy
