Havana Air Files for Chapter 11 as Airline Bankruptcies Mount in 2025

With just days remaining in 2025, the wave of airline bankruptcies affecting small and mid-sized carriers shows no sign of slowing.

Over the past several months, multiple airlines across Europe and North America have collapsed or entered insolvency proceedings. Icelandic low-cost carrier PLAY Airlines and Sweden’s Braathens Aviation both shut down operations during the fall after filing for bankruptcy within weeks of each other. Flag carrier Air Albania has also suspended all flights since early December, following Turkish Airlines’ decision to sell its 49% stake.

In the United Kingdom, regional operators Eastern Airways and Guernsey-based Blue Islands both entered abrupt insolvency proceedings, leaving thousands of passengers stranded and prompting rival carriers to offer rescue fares.

Havana Air Becomes Latest U.S. Airline to Seek Protection

In the United States, Miami-based Havana Air has become the latest airline to file for Chapter 11 bankruptcy protection. The carrier, which has operated flights from Miami International Airport since 2007, filed under its registered entity Viajehoy LLC in the U.S. Bankruptcy Court for the District of Delaware, according to a report by Law360.

Havana Air told the court that its financial difficulties stem from travel restrictions enacted earlier this year under the Trump administration, including a ban affecting citizens of Cuba and multiple other countries. While Cuban nationals are not entirely barred from entering the United States, they now face significant limitations when applying for student and business visas.

The airline said Cuban citizens and members of the Cuban diaspora traveling between Miami and airports in Havana, Holguín, and Santa Clara historically made up the majority of its customer base.

Additional pressure reportedly came from passenger boycotts after Havana Air’s operating partner, Global Crossing Airlines, continued operating charter deportation flights for U.S. Immigration and Customs Enforcement (ICE), according to Columbia Spectator.

“Until Recently, the Business Had Been Very Successful”

“Until recently, the business had been very successful, chartering about 30 flights a week and generating revenues of $3 million to $4 million a month,” Kevin G. Collins, a Bayard PA attorney representing Havana Air, told the court. “However, recent events have had a detrimental impact on the company, including its business and its revenues.”

Airlines That Filed for Bankruptcy in 2025

Several airlines filed for bankruptcy or ceased operations during 2025, including:

Spirit Airlines (Spirit Aviation Holdings Inc.), which filed for Chapter 11 protection for the second time on August 29
Ravn Alaska, which ceased operations in August after earlier restructuring efforts
Corporate Air, which filed for Chapter 11 in September as part of a planned sale
PLAY Airlines, which shut down operations and entered involuntary bankruptcy in September
Braathens Aviation, which canceled all flights and filed for bankruptcy in September

The growing list underscores the mounting financial strain facing smaller and mid-sized carriers as regulatory shifts, geopolitical uncertainty, U.S. and International tariffs, rising operating costs, and volatile demand continue to reshape the global airline industry. Unlike larger network airlines with diversified revenue streams, extensive alliances, and stronger balance sheets, smaller operators are often more exposed to sudden policy changes, fuel price fluctuations, aircraft leasing costs, and route-specific demand shocks. Many also lack the pricing power and financial flexibility needed to absorb disruptions or pivot quickly when market conditions change, leaving them particularly vulnerable in an environment where margins remain thin and competition intense.

Sources: AirGuide Business airguide.info, bing.com, yahoo.com