If an airline does not voluntarily file for bankruptcy, it can also lose its air operator’s certificate (AOC) over the state of its finances.
In the U.S., the certificate that grants an airline permission to sell and run flights is given out by the Federal Aviation Administration (FAA) and requires the holder to prove that it has the necessary planes, staff, safety systems and financial resources to run a functional airline over time.
Most recently, charter airline Tailwind Air lost its AOC in January 2025 after struggling to bring in the necessary traffic on its routes between Northeastern cities such as New York and Boston.
Houston-based charter airline Starflite Aviation had it stripped after regulators alleged that company owners falsified flight records of pilots it hired to bypass safety checks.
Charter airline H-Bird declared bankrupt by Swedish judge
In December 2025, charter carrier H-Bird lost its AOC after the Swedish aviation regulatory agency Transportstyrelsen revoked it due to the airline’s poor financial situation.
Now the airline has officially been declared bankrupt by a local judge, reported ch-aviation. Founded in 1991 out of Stockholm, H-Bird, for more than three decades, ran corporate, charter, and ambulance flights to remote parts of Sweden and nearby Nordic cities using a fleet of Cessna planes.
More Travel News:
- Airline to launch unusual new flight to Cayman Islands from the U.S.
- Iranian strike hits major airport, injuries reported
- Unexpected country is most luxurious travel destination for 2026
- U.S. government issues sudden warning on Switzerland travel
While very few details of the private company’s financial situation have been made public, H-Bird likely struggled to find enough high-spending travelers to book the flights necessary to cover the high cost of aviation.
After losing its AOC, the airline has not run any flights since January 2026. It is unclear whether the airline will be given time to seek investors and undergo a restructuring or go straight to liquidation. Barring a situation in which it eventually regains the license, it will be unable to fly in the near future.
Shutterstock
Why are so many smaller airlines filing for bankruptcy right now?
“Our planes take up to eight passengers and offer personal service and first-class food on board,” H-Bird currently writes on its website in the original Swedish. “With easily accessible bases in Bromma, Norrköping, and Oslo, we fly all over the Nordic region and Europe. We provide door-to-door transport, and our experienced pilots fly you where you want.”
These airlines filed for bankruptcy in 2025:
- Spirit Airlines (Spirit Aviation Holdings, Inc.): Filed for Chapter 11 bankruptcy for the second time on Aug. 29,2025.
- Ravn Alaska: Ceased operations in August 2025 after earlier Chapter 11 proceedings; shut down flights and folded into other operations such as New Pacific.
- Corporate Air: Filed for Chapter 11 bankruptcy (restructuring) in September 2025 as part of a planned sale, according to Bondoro.
- Play Airlines: The Reykjavik-based airline shut down operations and entered involuntary bankruptcy in September 2025.
- Braathens Airlines:The airline was forced to file for bankruptcy and canceled all of its flights in September 2025.
The market of rising jet fuel and operating costs, as well as heightened competition for specific routes, has created a particularly tough environment for many low-cost airlines.
Other smaller airlines to shut down in the last 12 months include British regional carriers Eastern Airways and Blue Channels, Swedish airline Braathens Aviation, and Icelandic low-cost carrier Play Airlines.
Related: Another travel company files for bankruptcy, cancels all trips
