The airline industry is grappling with significant turmoil as multiple regional carriers have filed for bankruptcy in early 2025. Following a series of bankruptcies in the latter part of 2024, Royal Air Philippines announced on January 4, 2025, that it would suspend all commercial flights, impacting approximately 4,000 travelers with tickets booked through March 2026. The abrupt closure left many passengers scrambling to find alternative travel arrangements.
Just a day later, on January 5, Indian charter airline Dove Airlines entered voluntary liquidation. The carrier had struggled to attract investment since ceasing operations in 2022, when it lost its last aircraft, a Cessna CitationJet, to creditors. Despite efforts to revive its financial situation, Dove Airlines was unable to overcome the challenges it faced.
Ecojet Airlines Fails to Launch
The situation worsened with the announcement that Ecojet Airlines, envisioned as the first zero-emission regional airline in Britain, would also enter voluntary liquidation. Established by green investor Dale Vince and former pilot Brent Smith, Ecojet aimed to revolutionize aviation by converting older aircraft, specifically Twin Otter and ATR 72 models, to hydrogen-electric engines developed by ZeroAvia.
Despite ambitious plans to operate zero-emission flights between cities such as Edinburgh and Southampton, the project faced numerous hurdles. Financing issues and regulatory deadlines proved insurmountable, leading to a lack of necessary investment. In January 2025, Ecojet laid off most of its staff and ultimately decided to cease operations. Liquidators Paul Dounis and Mark Harper from the London-based insolvency firm Opus were appointed to oversee the bankruptcy process.
“Ecojet was a start-up business and has no material assets,” Opus stated in its assessment. The firm emphasized that it would fund the liquidation process to ensure that employees receive their full statutory entitlements.
Impact of Regional Airline Closures
The wave of airline closures is not limited to Ecojet and Dove Airlines. Several other regional carriers have filed for bankruptcy in recent months. Notably, Spirit Airlines filed for Chapter 11 bankruptcy for the second time on August 29, 2025, while Ravn Alaska ceased operations after previous Chapter 11 proceedings. Play Airlines, based in Reykjavik, and Braathens Airlines also succumbed to financial pressures, with both companies entering involuntary bankruptcy in September 2025.
The collapse of these airlines highlights the challenges facing the aviation sector, especially among smaller operators. The ongoing struggle for profitability, coupled with rising operational costs and stiff competition, continues to put pressure on airlines worldwide.
In a statement reflecting on the Ecojet project, Dale Vince expressed disappointment, acknowledging that the initiative took “longer than we hoped to get the technology and regulatory pieces of the puzzle in alignment.” He characterized the effort as a genuine attempt to advance zero-emission aviation, now halted in light of insurmountable challenges.
As the situation develops, former employees and travelers affected by these closures are left to navigate the fallout from a rapidly changing aviation landscape.