Two Airlines' Sudden Bankruptcy Has Left Travelers Stranded Worldwide

After a string of recent foldings this year, two airlines' sudden bankruptcy has left travelers stranded worldwide in recent weeks. Back in June, the news broke that Play Airlines was ending all U.S. flights (and travelers were already seeing the impact). Now, the same airline has ended all operations abroad after declaring bankruptcy. And travelers who had already purchased flights through the airline were left scrambling to find a new way home.

If you've relied on Play Airlines for budget flights in Europe in the past, those days are now over. In September, Play and Braathens Aviation shut down permanently. For both Scandinavian airlines, the sudden action left travelers with no plan after flights were cancelled without warning. While one airline did step in to help claim flights and passengers, many were left without a flight home. As Play was based in Reykjavik, Iceland, many passengers relied on the carrier for connecting flights between Europe and North America. Now, there's one less budget option available.

In 2025, multiple other budget airlines will have either shut down all of their operations or shut down operations in regions they used to cover. Smaller airlines like Ravn Alaska, Air Belgium, and SKS Airways shut down operations earlier in the year, and even big-name budget airlines like WizzAir and Qantas Airways stopped flying to and from certain countries in Asia. If you're flying to or within Asia soon and need an alternative, this Asia-based airline took the crown as the "world's best ultra low cost carrier" for 2025.

Operations have suddenly ceased across the industry

With Play out of the picture, a similar airline for domestic flights in the United States filed for bankruptcy for a second time this year over the summer. For this reason, Spirit Airlines may be the next to go the way of Play. In a bankruptcy settlement, the airline cancelled an incoming order of more Airbus planes. However, if you frequently fly budget airlines in the U.S., there might be some hope as Spirit was just awarded $475 million to keep operations going. So it's unlikely that Spirit flights will disappear without warning in the near future, but the budget airline space is one to keep an eye on. In fact, Spirit Airlines is making big changes this November after ongoing financial struggles.

To top things off, this month, private airline Verijet announced that it will be ceasing all operations by the end of October. The private jet company, which is completely carbon-neutral, will no longer be fulfilling any flights. The airline filed for Chapter 7 bankruptcy, a form of bankruptcy in which the filer cannot make payments towards their debt. The airline was reportedly facing $38.7 million in liabilities after the death of its CEO, Richard Kane, in September. Verijet first began private flights in 2020, selling itself as a greener choice. While this announcement won't affect the average flier, the inconvenience of bankrupt carriers and canceled flights is a running theme in the aviation space at the moment.

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