Regional airlines face huge economic challenges to become profitable entities, as they must deal with competition from major national and global airlines and high operating costs.
The smaller the airline, the harder it is to stay in business. Each time one of them fails, it eliminates an option for consumers in a shrinking market.
Tailwind Air filed for bankruptcy protection
One of the first airlines to file for bankruptcy in 2026 was charter seaplane airline Tailwind Air, which filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of Virginia on Jan. 15, seeking to reorganize.
The Falls Church, Va.-based airline, which launched in 2019, operated a seaplane service between New York, Boston, and Washington, D.C., but could not make the service profitable.
The company transitioned to an on-demand charter service in 2024, but its Commuter Air Carrier Authorization was revoked in December 2024, and the company disposed of its entire jet fleet in 2025, according to AeroTime.
Float Alaska files for Chapter 11 bankruptcy after shutting down Ravn Alaska and New Pacific Airlines.
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Float Alaska files for bankruptcy after closing airlines
Another troubled airline owner, Float Alaska LLC, and six affiliates filed for Chapter 11 bankruptcy protection, seeking a sale of their assets, facing lawsuits, collection demands, attempts to perfect liens, and other claims against the debtor, according to court papers.
The Anchorage, Alaska-based owner of defunct New Pacific Airlines and Ravn Alaska filed its petition in the U.S. Bankruptcy Court for the District of Delaware on Jan. 26, according to PacerMonitor.
The debtor listed $1 million to $10 million in assets and $10 million to $50 million in liabilities in its petition.
Float’s largest unsecured creditors include VT San Antonio Aerospace Inc., owed over $1.6 million; Cephas Trust, owed $1 million; Lone Star Friends Trust, owed $1 million; Intelsat Alliance LP, owed over $778,000; Associated Energy Group LLC, owed over $656,000; AAR Supply Chain Inc., owed over $636,000; and Willis Towers Watson Northeast Inc., owed over $605,000.
Ravn Alaska and New Pacific Airlines shut down
Float Alaska’s airline Ravn Alaska operated out of Anchorage from late 2020 until it shut down in August 2025, facing severe economic problems.
The debtor’s New Pacific Airlines in summer 2023 began flying Boeing 757 jets out of Ontario International Airport in Ontario, Calif., with routes to Las Vegas, Reno, Nev., and Nashville, Tenn.
New Pacific Airlines shut down operations in November 2025, facing severe financial distress.
The airline had determined it needed to expand into five more markets to break even, but it did not have the funds to implement a plan, according to court papers.
New Pacific Airlines flew NHL teams
New Pacific Airlines in 2024 had pivoted to charter flights in an attempt to reduce losses and signed an agreement with Elevate Aviation Group’s Private Jet Services to fly six National Hockey League teams on its jets.
Elevate Aviation Group’s agreement pushed too many costs upon New Pacific Airlines, resulting in the airline losing money on every NHL flight, court papers said.
The debtor was losing money on both Ravn Alaska and New Pacific Airlines, burning through $5 million a month, and required monthly cash infusions to continue operating.
Float seeks $3.23 million DIP loan
The debtor seeks approval of up to $3.23 million in debtor-in-possession financing from its prepetition secured lender, Jones Holding LLC, to finance its bankruptcy case.
Float Alaska will seek a Section 363 sale of substantially all of its assets in a going concern sale and does not rule out a reorganization to possibly restart operations if the right plan sponsor can be found, according to court papers.
Float Alaska’s top unsecured creditors:
- VT San Antonio Aerospace Inc., owed over $1.6 million
- Cephas Trust, owed $1 million
- Lone Star Friends Trust, owed $1 million
- Intelsat Alliance LP, owed over $778,000
- Associated Energy Group LLC, owed over $656,000
- AAR Supply Chain Inc., owed over $636,000
- Willis Towers Watson Northeast Inc., owed over $605,000.
Related: Major department store brand liquidates in Chapter 11 bankruptcy
