Several charter and fractional airlines also filed for bankruptcy in 2025, as commercial airlines such as Play and Blue Island closed suddenly.
Florida-based Verijet and Montana-based charter airline Corporate Air simultaneously launched bankruptcy proceedings in October, while Alaska-based Kenai Aviation shut down operations weeks later in November.
The charter airline connects hubs like Anchorage and Fairbanks with smaller communities like 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 need to find them.”
The latest airline to file for Chapter 7 bankruptcy is Greensboro-based Jet It. While the airline, which once operated charter and regional flights, has not been operational since shutting down all operations in 2023, the Dec. 24 filing in U.S. Bankruptcy Court for the District of Delaware is the final step in a story that ultimately ended in liquidation.
As opposed to a Chapter 11 filing, which is intended to reorganize, Chapter 7 bankruptcy requires the judge to skip that step and go directly to liquidation. The airline, which was founded in 2022 by selling part ownership of HondaJet flights, has more than $36.2 million in liabilities, including $9.7 million in unsecured claims, documents show.
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Joint stock airlines operate by selling shares in private jets and allocating these shares by providing customers with a set number of hours that they can use to request flights operated by the airline’s supplied crew.
Jet It launched with an advertised price of $1,600 per hour and operates more than 18,000 flight hours per year. While the airline was once the 12th largest private jet operator in the U.S., Jet It has racked up significant debt due to high jet fuel costs and a customer base that has dwindled over time.
The largest creditor remains World Fuel Services, to which Jet It owes $735,695, documents show. American Express is owed more than $600,000, and smaller creditors include PIC Card Services LLC and Jetex Flight Services. FlightSafety, owned by Berkshire Hathaway, claims it was never paid $400,981 for pilot training services.
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Spirit Aviation Holdings, Inc.:Applied Chapter 11 second bankruptcy August 29,2025.
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Raven Alaska: Stop operating August 2025 Following previous Chapter 11 proceedings; closing flights and merging into other businesses such as New Pacific.
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corporate aviation:Applied Chapter 11 Bankruptcy (Reorganization) September 2025 Bondolo said it was part of a planned sale.
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Play with airlines: The Reykjavik-based airline shut down operations and entered involuntary bankruptcy in 2017. September 2025.
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brazens air: Forced to file for bankruptcy and cancel all flights September 2025.
