Another US airline has filed for bankruptcy, just one month after the collapse of Spirit. 

Silver Airways flies to vacation hotspots across Florida and the Caribbean – prompting fears for the fate of trips planned by Americans looking for winter sun.

It pairs up with other bigger airlines like United and JetBlue for the final leg of trips to smaller airports in Florida and the Bahamas. It also has flights in the US Virgin Islands, and Puerta Rico.

The regional airline, which serves 29 destinations with a fleet of ATR turboprop planes, filed for Chapter 11 bankruptcy protection on Monday.

But it has reassured customers that it will continue operating as usual for the time being.   

The airline, which operates flights out of Tampa International Airport in Florida, confirmed that all its tickets remain valid. 

Future flights can also still be booked on travel websites or on Silver’s website.  

The airline, which has debts as high as $500 million, hopes to complete the bankruptcy process by the end of 2025. It will 

Budget airline Silver Airways filed for Chapter 11 bankruptcy protection on Monday

Budget airline Silver Airways filed for Chapter 11 bankruptcy protection on Monday

Among the creditors are the IRS, which is reportedly owed $2.1 million, and airport authorities in Orlando and Fort Lauderdale, who are owed at least $1 million each. 

‘This decision will allow us to secure additional capital and undertake a financial restructuring that will strengthen our position as a competitive airline,’ the company said in a statement. 

The airline appeared to be in trouble in 2023, when it was reportedly not paying rent at its Fort Lauderdale hub.

The airline ran up a seven figure debt at the airport and faced eviction, View From The Wing reported

The writing was firmly on the wall when American Airlines dropped them as a codeshare partner earlier this year. 

Silver then stopped flying any further north of Greenville-Spartanburg in South Carolina and continued to hemorrhage cash, the publication reported. 

The bankruptcy filing comes after America’s biggest budget airline, Spirit Airlines, filed for bankruptcy in November.  

Spirit has suffered a long run of quarterly losses, with its last annual profit made in 2019. 

The no-frills airline lost more than $2.5billion since the start of 2020 and faces looming debt payments totaling more than $1billion over the next year. 

The company has struggled to recover since the Covid-19 pandemic nearly shut down the airline industry and was hard hit again when problems with RTX’s Pratt & Whitney Geared Turbofan (GTF) engines grounded many of its aircraft.

Spirit Airlines, the nation's biggest budget airline, filed for bankruptcy in November

Spirit Airlines, the nation’s biggest budget airline, filed for bankruptcy in November 

Ultra-low-cost carriers, which excelled at keeping their expenses low and offering affordable, no-frills travel, have struggled since the pandemic as travelers prefer to pay extra for a more comfortable journey as they pursue experiences.

Spirit’s troubles, along with those at some of its rival budget carriers, have spurred talks of a flawed business model among some Wall Street analysts. 

Leave a Reply

Your email address will not be published. Required fields are marked *