With jet fuel prices hovering at highs unseen for years over the war in Iran, many smaller regional and charter airlines that already faced a tough market are at particular risk of bankruptcies and shutdowns.
In Europe, charter airline H-Bird was declared bankrupt by a Swedish judge earlier this month while Mexican holiday airline Magnicharters just canceled all flights for two weeks in a situation that left hundreds of travelers stranded at popular vacation destinations across the country.
The abrupt shutdown left the Mexican government having to step in to work with larger airlines such as Aeromexico and Volaris to get on evacuation flights.
Lufthansa shuts down CityLine airline early, dozens of flights canceled
In another shutdown that came on very suddenly, German aviation giant Lufthansa announced that it is permanently discontinuing its regional brand CityLine. Established just five years after Lufthansa in 1958, the regional carrier served as a feeder airline getting travelers from different cities in Europe to their flights at major airports like Frankfurt (FRA) and Munich (MUN).
While Lufthansa was already planning to replace CityLine with the new Lufthansa City Airlines in 2027, a representative confirmed that “in view of significantly increased kerosene prices, which have more than doubled compared to the period before the Iran war, as well as rising additional burdens from labor disputes, the implementation of the corporate strategy is being partially accelerated.”
Related: Low-cost airline cancels all flights for 2 weeks, travelers stranded
All CityLine flights from April 18 are now “permanently removed from the flight program” while approximately 2,000 employees have been laid off or offered positions in other roles under the Lufthansa umbrella. The aging fleet of 27 planes including the Airbus A319 and the Bombardier CRJ900 is also being permanently taken out of service on April 18.
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“A loss-making airline”: Lufthansa justifies shutdown of CityLine
With the end of CityLine initially intended to be more gradual, dozens of flights to Germany from countries like Croatia, Slovenia and Serbia scheduled for the summer have been called off. Travelers with booked travel are being offered either refunds or rebooking options on other Lufthansa branches.
These are the airlines that shut down in 2026:
- Magnicharters: While not yet fully shut down, Mexican low-cost airline Magnicharters canceled all flights until May 2026 in a shutdown that left thousands stranded.
- Starflite Aviation: Houston-based Starflite Aviation had its AOC license revoked in March 2026 amid FAA claims that owners falsified pilot training records to bypass safety audits.
- AlpAvia: Slovenian charter airline AlpAvia also shut down in March 2026 over financial problems.
- H-Bird: Charter airline H-Bird was declared bankrupt by a Swedish judge after losing its operating license at the end of 2025.
“This is a painful step, especially with regard to the colleagues at Lufthansa CityLine,” Lufthana Group Chief Financial Officer Till Streichert said in a statement. That said, the parent company justified the shutdown as needed “to reduce further losses at the loss-making airline.”
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The shutdown also comes amid several prolonged disputes between Lufthansa and the unions representing the pilots and various cabin crew who work for the airline.
Related: Airline shuts down in bankruptcy, runs last flight
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