Another regional airline files for bankruptcy after canceling flights

While at the very least 14 airways around the sphere own filed for financial distress security in 2024, the title that most recurrently involves mind is Spirit Airways (SAVE) .

The low-designate big based in Florida announced that it may maybe maybe need Chapter 11 security in November 2024 and, three months later in February, printed a reorganization understanding that will take Spirit non-public by handing over adjust to the largest bondholders.

It also these days announced that Solar Country Airways President and Chief Financial Officer Dave Davis would replace old fashion CEO Ted Christie, who used to be given the boot on April 7 no topic previous board reassurances that he would proceed to manual Spirit ahead into the long spin.

Fellow Florida-based low-coster Silver Airways goes via its maintain financial distress-linked upheaval; after Silver lost the lawful to wing into several airports over unpaid charges, a trustee assigned to its Chapter 11 case is now asking a make a call to skip any financial distress security efforts and take the airline straight to liquidation.

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‘Inability to resolve irregularities identified within the inspections’

Over in Brazil, low-designate regional carrier Voepass lost its license to wing in March 2025 after regulators chanced on that it failed to address their security considerations. In August of the old year, Voepass Flight 2283 to São Paulo from the south of the nation crashed and killed all 62 passengers and crew people onboard.

“The choice, on a precautionary foundation, used to be attributable to Voepass’ incapacity to resolve irregularities identified within the inspections applied by the Company, as effectively as the non-compliance with established running prerequisites,” the Nationwide Civil Aviation Company of Brazil (ANAC) mentioned in an announcement closing March.

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On April 23, Reuters reported that the airline had filed for financial distress security in Brazilian courts after running up a debt of bigger than 209.2 million Brazilian reais ($36.78 million USD). In its court papers, Voepass claims that Chilean carrier and South American big LATAM (LTMAQ) interfered with its ability to salvage on the lawful financial direction by pulling planes old as a part of their codeshare settlement

"With out reference to this dispute already being the topic of arbitration, really that LATAM has always exercized big administrative interference within the administration of Voepass' enterprise," the airline writes in filings.

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In an announcement, LATAM denies any accusations of interference and mentioned that it suspended plane use as a precaution within the wake of the fatal smash.

Is the airline’s commitment to ‘resuming operations as soon as imaginable’ at closing at an discontinue?

Voepass had previously filed for financial distress security in 2012 and 2017.

While it used to be ready to emerge from these by polishing off restructuring, the August 2024 smash precipitated a considerable hit to Voepass’ reputation amongst the Brazilian public while months spent without running flights proceed to salvage the carrier extra into debt that will seemingly be more and more complicated to salvage out of.

In March 2025, Voepass mentioned that it used to be nonetheless "committed to resuming operations as soon as imaginable" while also extra arguing that the suspended lawful to wing would cause considerable disruption to the "hundreds of Brazilians who use regional aviation daily […] rely on its provider."

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