Along with the sudden shutdown of commercial airlines such as Play and Blue Islands, several charter and fractional carriers also filed for bankruptcy in 2025.
Florida-based VeriJet and Montana charter carrier Corporate Air both began bankruptcy proceedings around the same time in October, while Alaska-based Kenai Aviation followed a few weeks later with a complete shutdown of operations in November.
Charter airlines connect hubs such as Anchorage and Fairbanks with the smaller communities of Kenai, Homer and Seward.
“We need capital, we need partners, we need a lifeline,” owner Joel Caldwell wrote in November. “That investor is out there, we have to find them.”
The latest airline to file for Chapter 7 bankruptcy is Greensboro-based Jet It. The carrier, which once operated charter and partial flights, has not operated since ceasing all operations in 2023.
Unlike a Chapter 11 filing with the intent of restructuring, a Chapter 7 bankruptcy asks the judge to skip that step and go straight to liquidation. The filing shows that the airline, launched in 2022 after selling partial ownership to HondaJet Flights, ran into more than $36.2 million in liabilities, including $9.7 million in unsecured claims.
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A fractional airline operates by selling shares to private jets that give customers a set of hours they can use to request flights with crew provided by the airline.
At the time of its inception, Jet It advertised a rate of $1,600 per hour and operated more than 18,000 flight hours a year. The airline was once the 12th largest private jet operator in the U.S., Jet It also incurred significant debt due to high jet fuel costs and a customer base that drained away over time.
The largest creditor remains World Fuel Services to which Jet It owes $735,695, according to the filing. American Express is owed more than $600,000 while smaller creditors include PIC Card Services LLC and Jetex Flight Services. Berkshire Hathaway unit FlightSafety claims it was not paid $400,981 for pilot training services listed by the airline.
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Spirit Airlines (Spirit Aviation Holdings, Inc.): Filed for Chapter 11 Bankruptcy for the second time August 29,2025.
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Raven Alaska: Closed operations on August 2025 After a previous Chapter 11 proceeding; Discontinue flights and combine with other operations such as New Pacific.
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Corporate Air: Filed for Chapter 11 In bankruptcy (reorganization). September 2025 As part of a planned sale, according to Bondoro.
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Play Airlines: The Reykjavík-based airline ceased operations and entered involuntary bankruptcy September 2025.
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Brathans Airlines: Forced to file for bankruptcy and cancel all flights September 2025.
