Along with the sudden closure of commercial airlines such as Play and Blue Islands, a number of charter and fractional carriers have also filed for bankruptcy in 2025.
Florida-based Verijet and Montana charter carrier Corporate Air both began bankruptcy proceedings at the same time in October while Alaska-based Kenai Aviation followed just weeks later with a total shutdown of operations in November.
The charter airline connected hubs like Anchorage and Fairbanks with smaller communities in 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 just have to find them.”
The latest airline to file for Chapter 7 bankruptcy is Greensboro-based Jet it. While the carrier once operated charter flights and fractionally has not operated since it closed all operations in 2023, the December 24 filing in the United States Bankruptcy Court for the District of Delaware is a final step in a story that will finally end in liquidation.
Unlike a Chapter 11 filing with the intent to restructure, a Chapter 7 bankruptcy requires the judge to skip that step and go straight to liquidation. The filing shows that the airline that launched in 2022 by selling fractional ownership to HondaJet flights has accrued more than $36.2 million in liabilities of which $9.7 million were unsecured claims.
Related: Airline shuts down after losing license, latest flights canceled
A fractional airline operates by selling shares to a private jet that are paid for by giving customers a set number of hours they can use to request flights manned by crew provided by the airline.
At the time it launched, Jet It advertised rates of $1,600 per hour while operating over 18,000 flight hours per year. While the airline was once the 12th largest operator of private jets in the United States, Jet It also incurred significant debts due to the high cost of jet fuel and the fading customer base over time.
The largest creditor remains World Fuel Services to whom 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 never paid $400,981 for training services of pilots hired by the airline.
-
Spirit Airlines (Spirit Aviation Holdings, Inc.): Filed for Chapter 11 failure for the second time on August 29,2025.
-
Raven Alaska: Stopped operating at August 2025 after previous Chapter 11 proceedings; closed 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: Reykjavik-based airline shut down operations and entered involuntary bankruptcy September 2025.
-
Braathens Airlines:Forced to file for bankruptcy and canceled all domestic flights September 2025.