Jet It Files for Bankruptcy
Jet It Files for Bankruptcy

Airline bankruptcies are often misunderstood. Some carriers disappear overnight, while others continue flying as if nothing happened. To make sense of the headlines, it helps to look at the full picture.

A Quick Primer: Chapter 11 vs. Chapter 7

Before reviewing the list, it’s important to understand the difference between the two main types of U.S. bankruptcy filings used by airlines.

  • Chapter 11 (Reorganization)
    The airline keeps operating while restructuring debt, contracts, or operations. Most large U.S. airlines that file for bankruptcy choose this route.

  • Chapter 7 (Liquidation)
    The airline shuts down and sells its assets. Flights stop, and the company ceases operations.

Both appear in bankruptcy statistics, but they signal very different outcomes.

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Jet It Files for Chapter 7 Bankruptcy

Jet It has officially filed for Chapter 7 bankruptcy, bringing its private aviation business to a permanent close. According to court documents filed in Delaware on December 24, the company reported more than $36 million in liabilities, including nearly $10 million in unsecured claims.

Founded in 2018, Jet It built its brand around a fractional ownership and jet-card model focused on HondaJet aircraft. The company expanded rapidly in the U.S., Canada, and Europe, but growth pressures and rising costs proved unsustainable. Jet It halted flight operations more than two years before the filing.

The liquidation underscores ongoing financial risks facing smaller and niche private aviation operators in the U.S.

U.S. Airlines That Filed for Bankruptcy (Recent Years)

Below is a consolidated list of notable U.S.-based airlines that filed for bankruptcy from roughly the late 2010s through the mid-2020s. The list includes both passenger and charter operators and reflects publicly reported filings.

Airlines That Filed for Chapter 11 (Reorganization)

  • LATAM Airlines Group (U.S. operations)
    Filed in 2020 due to pandemic-related revenue collapse. Exited Chapter 11 in 2022 after restructuring.

  • Avianca Holdings (U.S. filing)
    Filed in New York in 2020. Successfully reorganized and emerged in 2021.

  • Frontier Airlines
    Earlier bankruptcy in 2008 is outside this list, but Frontier is often cited as a case study of successful long-term recovery after Chapter 11.

(Note: Major legacy U.S. airlines such as American, Delta, and United did not file for bankruptcy during this period.)

Airlines That Filed for Chapter 7 (Liquidation)

  • Jet It
    Filed for Chapter 7 in 2025 after suspending operations, marking a full shutdown rather than restructuring.

  • Ravn Alaska
    Filed in 2020 and ceased operations. Some assets were later acquired by new operators.

  • Trans States Airlines
    Shut down in 2020 as demand collapsed during the early pandemic months.

  • Compass Airlines
    Filed for Chapter 7 in 2020 and permanently closed.

What This List Tells Us About the U.S. Airline Industry

1. Bankruptcy Does Not Always Mean Failure

Many airlines that file for Chapter 11 continue operating normally during the process. In some cases, bankruptcy is a strategic reset rather than a collapse.

2. Smaller and Niche Airlines Face Higher Risk

Charter operators, regional carriers, and jet-membership models appear more vulnerable to Chapter 7 liquidation, especially when capital markets tighten or demand shifts suddenly.

3. The Pandemic Was a Stress Test, Not the Only Cause

While COVID-19 triggered many filings, underlying issues such as:

  • high fixed costs

  • fuel price exposure

  • thin margins
    were already present in many cases.

4. Industry Consolidation Is the Long-Term Result

When airlines disappear, routes don’t always return. Over time, fewer carriers often mean less competition and higher prices on certain markets.

Why This Matters to Travelers and Investors

For travelers:

  • A bankruptcy filing does not automatically cancel flights

  • Chapter 7 filings, however, usually mean tickets become unusable

For investors and employees:

  • Chapter 11 can preserve jobs and equity value

  • Chapter 7 almost never does

Understanding the difference is critical when reading headlines about “another airline going bankrupt.”

Final Takeaway

Looking at a complete, updated list of airline bankruptcies reveals a more nuanced reality than the headlines suggest.
Some airlines fail outright. Others survive, adapt, and continue flying for years.