2024 has been a particularly difficult year for airlines around the world, despite growing demand for air travel. Since the beginning of the year, companies such as Air Malta, Armenian FlyArna, LIAT of Antigua and Barbuda, as well as Canada’s Lynx Air and Canada Jet Lines have filed for bankruptcy.
Now joining this list is FlyEgypt, founded in 2015 and operating mainly in the Middle East. The company found itself in dire straits after being forced to return most of its fleet for failing to renew leases.
“The FlyEgypt crisis demonstrates the complexity and risks of the airline industry,” the statement said. At its peak, the airline operated nine narrow-body aircraft. Now FlyEgypt only has one Boeing 737-800 left. The company’s last flight took place on September 20 on the Jeddah-Cairo route.
Egypt’s civil aviation authority has prohibited the company from starting the liquidation process until it submits a debt repayment plan. These include debts owed to local creditors and European travel companies.
This situation reflects a broader trend in global aviation. Therefore, American Spirit Airlines was also under threat of bankruptcy. In early October, the company’s shares fell sharply amid rumors of possible insolvency. However, Spirit was able to stabilize itself by signing a refinancing agreement.
The situation highlights how difficult it is for airlines today, especially those operating with a low-cost model.
Questions remain about the future of passengers who have already purchased tickets and the payment of FlyEgypt’s debts. Egyptian authorities said the company must first pay off its local debts. In particular, to pay the bills for the national navigation service, airports and workers’ social insurance. Only after this can the company initiate liquidation.
Cursor previously wrote that another major airline had canceled flights to Israel.
