Six UK airlines have collapsed into administration, resulting in the cancellation of all flights and holidays. The most recent casualty is private jet charter operator Zenith Aviation Limited, which has entered administration with the loss of all 41 jobs due to mounting financial pressures.
This wave of collapses occurs against the challenging backdrop of the Iran war. Since the conflict in the Gulf began, tour operators and airlines have been grappling with the closure of the Strait of Hormuz. This has caused fuel prices to skyrocket amid fears of shortages, subsequently deterring holidaymakers from booking. TUI, Jet2, Easyjet, and Ryanair have all reported trepidation and hesitancy among passengers.
Sonia Jordan, president of restructuring trade body R3 and partner at Knights, noted that businesses continue to face difficult trading conditions despite signs of economic growth earlier in the year. She stated, "Insolvency numbers always reflect a range of underlying factors and while we have seen welcome economic growth in the first quarter of the year, the current environment remains challenging for businesses and households alike."
Zenith Aviation
Paul Hargreaves, from Nexus Corporate Solutions Limited, was appointed administrator by the company's director after the firm encountered worsening financial difficulties. Mr. Hargreaves explained that the company had entered administration due to "cashflow issues, debtors not paying, and historic ownership and management issues." He added, "I was appointed administrator of the company on May 15, 2026 by the director, and the company is in an insolvent position due to cashflow issues, debtors not paying, and historic ownership and management issues." He further commented, "It is unfortunate for the company and the former employees, however, we are assessing the assets of the company, assisting employees with claiming their statutory redundancy entitlements, and looking at options to include potential rescue, or buyout should that be appropriate."
Eastern Airlines
Eastern Airways, founded in 1997 and based at Humberside Airport in North Lincolnshire, halted flights last October before formally entering administration a month later. The regional carrier operated routes from airports across the UK as well as services to Ireland and parts of Europe. Jamie Miller, from RSM UK Restructuring Advisory, who was appointed joint administrator, previously stated that efforts were made to retain a small number of staff to maintain the airline's aircraft while options for rescuing parts of the business were explored. He added that administrators would consider approaches from potential buyers interested either in reviving the airline or acquiring some of its assets.
Ascend Airways
UK-based wet-lease carrier Ascend Airways has collapsed, citing high jet fuel prices as a root cause. The company had a fleet of seven Boeing 737s, which will be handed back to lessors. The company was part of the Avia Solutions Group (ASG), which also saw its SmartLynx airline cease trading in 2025, with debts reported to exceed €240 million. According to a statement by Price Bailey, the accountancy firm retained by Ascend Airways, "Ongoing geopolitical tensions in the Middle East have contributed to a sustained increase in jet fuel prices. This volatility has created a challenging outlook for the upcoming summer season, with many carriers already reducing capacity." The statement continued, "For Ascend Airways, these external pressures have compounded the structural challenges of operating a UK AOC within the European ACMI market. A lack of reciprocal wet leasing rights for UK carriers, combined with a higher cost base, has made the UK certificate a more expensive and less agile option compared to EU AOCs."
EcoJet
EcoJet Airlines, based in Scotland, which claimed to be 'flying towards a greener future by empowering people, delivering excellence in every flight, and shaping tomorrow's aviation through innovation', has also collapsed. According to a notice published in the official Gazette public records on 1 May, Paul Dounis and Mark Harper from Opus Restructuring were appointed joint liquidators this month. This marks a short lifespan for the firm, having only been founded in 2023 by Dale Vince, the founder of Ecotricity and owner of Forest Green Rovers. A spokesperson for the business said, "EcoJet was a start-up business and has no material assets. The members have elected to fund the liquidation process to ensure that the company's employees receive their full statutory entitlements." Mr. Vince stated that he had 'paused investment into EcoJet', adding, "We remain committed to electrifying all forms of transport - aviation is the last frontier and the hardest. It's taking longer than we hoped, to get the technology and regulatory pieces of the puzzle in alignment, and so we're pausing work at this time. This is a vital frontier in the move to net zero, green living, whatever you choose to call it - and it's absolutely doable. It's a matter of when, not if."
Aer Lingus UK
The UK-based subsidiary of Irish flag carrier Aer Lingus, headquartered in Belfast, has also ceased operations. The brand was retired following a Manchester Airport base closure earlier this year.
Blue Islands
Blue Islands Limited, a regional airline of the Channel Islands with its head office in Forest, Guernsey, and registered office in Saint Anne, Alderney, has also collapsed. It operated scheduled services from and within the Channel Islands to the United Kingdom and the rest of Europe, with main bases at Guernsey Airport and Jersey Airport.
