The first airline liquidations of 2026 have already started emerging.
The first airline to formally cease operations in 2026 is Royal Air Philippines — the Manila-based charter and cargo airline more commonly referred to as Royal Air received licensing to run commercial flights in 2017 and quickly expanded to international destinations like Cambodia, China, South Korea, Hong Kong and Taiwan.
On Jan. 4, the airline confirmed that it was canceling all of its commercial flights in a situation that left between 3,000 and 4,000 travelers with tickets booked between until March 2026 having to seek out alternative travel options. While the airline currently states that it is looking forward to "welcoming you aboard soon," a long string of recorded financial challenges makes any scenario other than a total shutdown increasingly unlikely.
Indian charter airline Dove Airlines enters voluntary liquidation process
A second airline to shut down entirely in 2026 is Indian charter carrier Dove Airlines. As first reported by local Insolvency Tracker, the airline that was founded in 2007 out of Kolkata has entered the voluntary liquidation process on Jan. 5 after multiple attempts to turn its finances around did not come into effect.
The airline has not operated flights since 2022 when it lost its last Cessna CitationJet/CJ/M2 jet to creditors. In 2015, manufacturing company Usha-Martin divested its 50% stake in the charter carrier due to sustained financial losses.
Related: Another airline files for Chapter 7 bankruptcy, all flights canceled
The National Company Law Tribunal (NCLT) of India has kept the airline in insolvency proceedings for years due to efforts to find new funders and turn its finances around (the company brought in modest profits of ₹23.9 lakh or $2,600 USD for the 2024 fiscal year) but after these failed to materialize the airline has chosen to enter voluntary liquidation proceedings under the Insolvency and Bankruptcy Board of India (IBBI).
"The airline remained plagued by financial stress": Dove Airlines
"At its peak, Dove Airlines operated as a non-scheduled (charter) carrier, providing passenger and cargo services using regional aircraft like the Dornier 228," Insolvency Tracker reports. "Despite ambitious mid-career plans to join the government's UDAN scheme for regional connectivity, the airline remained plagued by financial stress, grounded fleets, and legal disputes with aircraft lessors."
These airlines filed for bankruptcy in 2025:
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Spirit Airlines (Spirit Aviation Holdings, Inc.): Filed for Chapter 11 bankruptcy for the second time on August 29,2025.
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Ravn Alaska: Ceased operations in August 2025 after earlier Chapter 11 proceedings; shut down flights and folded into other operations such as New Pacific.
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Corporate Air: Filed for Chapter 11 bankruptcy (restructuring) in September 2025 as part of a planned sale, according to Bondoro .
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Play Airlines: The Reykjavik-based airline shut down operations and entered involuntary bankruptcy in September2025.
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Braathens Airlines:The airline was forced to file for bankruptcy and canceled all flights in September 2025.
As part of the liquidation process, any creditors who have unpaid debts with Dove Airlines have been ordered to submit proof of their claims by Feb. 4 for bankruptcy process overseen by liquidator Pranab Kumar Chakrabarty.
"The move to voluntary liquidation suggests that the company's current directors have determined the entity is solvent enough to pay its remaining debts through an orderly asset sale rather than a forced bankruptcy," Insolvency Tracker reports further. "As the February 4 deadline approaches, the once-hopeful regional player prepares for its final landing, closing a thirty-year legacy of Indian private aviation."
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This story was originally published by TheStreet on Jan 11, 2026, where it first appeared in the Travel section. Add TheStreet as a Preferred Source by clicking here.
