A turbulent year for aviation: airlines worldwide declared insolvency

By: Trademagazin Date: 2024. 11. 22. 10:37

The difficulties of this year have posed a serious challenge for many airlines. While in 2023, high ticket prices and an increase in the desire to travel had a positive impact on airline traffic worldwide, in 2024, economic uncertainty, increased competition and inflation have forced several companies to the ground. Dozens of airlines have filed for bankruptcy or ceased operations during the year – including companies with a history of several decades such as Czech Airlines or Air Malta.

Europe: Old names disappear

One of the biggest losses is the demise of Czech Airlines (CSA), founded in 1923, which ceased operating its flights on October 26. The company’s financial situation was already shaken during the Covid pandemic, and its flights were taken over by its owner Smartwings. Air Malta, which has been in operation for 50 years, also closed its doors this year due to the end of state support due to EU rules. The airline was quickly replaced by the new state-owned airline, KM Malta Airlines. Germany’s Rhein-Neckar Air also filed for bankruptcy in early November after the pandemic permanently curtailed operations.

Canada: A series of low-cost carriers close

Low-cost airlines in Canada have had a particularly difficult year. Canada Jetlines and Lynx Air have filed for bankruptcy, and Swoop has already ceased operations in 2023, leaving only one low-cost carrier, Flair Airlines, in the market. The competition for low fares and high operating costs have put significant pressure on these companies.

Australia and the Pacific: Several regional carriers have closed

In Australia, Rex Airlines and Bonza have also been forced to close. Rex Airlines gave up competing with the country’s two largest airlines, Qantas and Virgin Australia, in July, while Bonza closed after its main investor withdrew. In the region, Vanuatu’s national airline, Air Vanuatu, also filed for insolvency after declining passenger numbers made its operations unsustainable.

Caribbean: Hurricane season and financial woes kill airlines

In the Caribbean, LIAT, which has been struggling for years, closed its doors in January and Jet Air in June. Both companies faced severe financial problems and labor shortages, while LIAT’s operations were also hampered by frequent hurricanes.