26 Airlines That Went Out of Business in the First Two Decades of the 21st Century

Pan Am, Trans World Airlines. These storied names of the last century are well known to regular readers of our publications. A mere mention still evokes the glamor of travel of a past era but it’s been 33 years since Pan Am last flew and that figure is 23 years for Trans World Airlines.
Along with TWA, more than a few other carrier ceased operations since the dawn of the new millennium on January 1, 2001, including Air Berlin, Transaero, and Kingfisher.
Others storied names were subsumed into other airlines thanks to mergers and acquisitions. These included US Airways, Northwest Airlines, and Continental Airlines as well as Virgin America and America West, among others.
While the issues that caused these airlines to cease operations varied greatly, they can largely be put under the rubric of poor management, lower demand, and changing tastes.
Schloß Schönbrunn, where the Treaty of Schönbrunn or Treaty of Vienna was signed in 1809, ending the Fifth Coalition during the Napoleonic Wars. This was followed by the Congress of Vienna in 1815, which redraw much of the map of Europe.
Criteria for inclusion in this survey includes that the airline had to have been in existence for over five years.  We also limited our survey to those carriers that operated ten or more aircraft at the time of shutdown.  In addition, airlines are listed in order of the date of their demise.
While for all intensive purposes (or is it for all intents and purposes, or for all in tents with porpoises, I forget), a year is just a number, the course of each century has been largely determined in its first 25 years. In the 19th century, the periphery of the Industrial Revolution was defined and the Wiener Kongreß, or Congress of Vienna, laid out a balance of power among all the great powers in Europe.  At the dawn of the 20th century, the Great War led to the destruction of three great empires, namely the Austro-Hungarian, Russian, and Ottoman, and the treaty ending the conflict, the Traité de Versailles, or Treaty of Versailles, with its War guilt clause, led to the rise of National Socialism in Germany, bringing Adolf Hitler to power and subsequently resulting in the Second World War.
It’s too soon to examine the first quarter of the 21st century (a properly written history is one that respects the need for distance and the proper degree of distance is determined by current historiographical criteria) since it’s not quite over yet, but we can speak of the repartition of energy and market areas and how borders have been redrawn as well as the advent of new money and trade systems in the global economy.
Twin Towers – the original 1 World Trade Center (the North Tower) and 2 World Trade Center, in an undated photo taken prior to September 11, 2001
We do know that it’s been a tumultuous period for the airline industry, starting with the terror attacks of September 11, 2001 that brought down four U.S. aircraft, two into the World Trade Center in New York City, one into the Pentagon in Washington, D.C., and one whose mission was derailed by passengers who heroically fought back, causing the aircraft to impact in an open field in Somerset County, Pennsylvania, instead of its intended target, which was believed to have been the U.S. Capitol building, also in Washington, D.C.
The Great Recession moved economic issues to the forefront and the coronavirus pandemic upended lives and economies across the globe while killing millions and bringing global air traffic to a virtual standstill.
Here’s a look at the airlines we were forced to say farewell, au revoir, and auf Wiedersehen to since the first of January 2001.
A baggage cart at the new TWA Hotel
TRANS WORLD AIRLINES – 2001
Trans World Airlines, or TWA, began operations in 1927 and, by 1930, was one of the so-called “Big Four” airlines in the United States, along with American, Eastern, and United. American aerospace engineer, business magnate, film producer, investor, philanthropist, and pilot Howard Hughes gained control of the airline in 1939 and led its expansion in Europe, the Middle East, and Asia after the end of the Second World War, making TWA the second unofficial flag carrier of the United States after Pan Am.
Under a Carl Icahn-engineered leveraged buyout that took place in 1988, TWA became saddled with debt and underwent bankruptcy several times. Unable to continue operations, the airline negotiated a deal with American Airlines for it to acquire some of TWA’s assets in bankruptcy without actually acquiring the airline. TWA operated its final flight on December 1, 2001.
The airline’s storied name, lives on, however, at the TWA Hotel in New York City. The iconic TWA Flight Center at John F. Kennedy International Airport was reborn as the TWA Hotel in May 2019 when it opened its doors to guests.
The 1962 TWA Flight Center, designed by Eero Saarinen, was declared a landmark by the New York City Landmarks Preservation Commission in 1994, and the hotel is a faithful restoration of the Finnish architect’s masterpiece.
Imperial Class flight attendants welcoming passengers on board a Transaero flight from New York to Moscow
KINGFISHER AIRLINES – 2012
Kingfisher Airlines, which was founded in 2003 by the flamboyant Indian billionaire Vijay Mallya as part of his United Breweries Group empire, began domestic operations in 2005 and international flights in 2008 before flaming out in 2012. By that time, it had even been given the green light to join the oneworld alliance, following its successful completion of a readiness review overseen by the airline’s oneworld sponsor, British Airways. At that point, the carrier served 54 destinations, 46 of which were in India, with principal hubs in Delhi, Bangalore, and Mumbai. Due to severe financial difficulties, the International Air Transport Association, known as IATA, suspended Kingfisher, which put its oneworld plans on hold. This was followed by the suspension of its license to operate by India’s Directorate General of Civil Aviation on October 20, 2012.
A Kingfisher is  brightly colored bird with a large head and long sharp beak, typically diving for fish from a perch and the airline was known for its colorfully painted aircraft and highly regarded customer and in-flight service.
TRANSAERO – 2015
Transaero was a Russian airline founded in 1990 as a charter airline with aircraft leased from Aeroflot. It was the first Russian airline with a frequent-flyer program. The airline spent lavishly on its international first-class cabin and new aircraft, although it neglected business class and coach. By 2015, it had accumulated 77 billion rubles ($1.2 billion) in debt and tried to sell itself to Aeroflot and then to competitor S7. The airline was shut down by the Russian government in late October of 2015, stating that the airline’s enormous debt posed an imminent hazard to the flying public.
Düsseldorf was one of the Air Berlin’s two hubs.
AIR BERLIN – 2017
Air Berlin, which was founded as a U.S. company based in Oregon in 1978 to operate charter flights in and out of West Berlin, flew its final flight on October 28, 2017 after almost 40 years of plying the skies as Europe’s fourth largest carrier and an airline that was not quite a low-cost carrier and nor was it a full frills airline. Never quite finding its niche, the airline struggled for years and found a financial savior in Etihad, which became its largest shareholder in 2011 and helped keep the airline afloat. Until it didn’t.
TWO HAWAIIAN AIRLINE FLAMEOUTS – ALOHA AND ISLAND AIR
After 61 years of service, Aloha Airlines flew its last flight on March 31, 2008. The final flight, an interisland hopper from Maui that landed in Honolulu at 10:34 p.m., was greeted by over 1,000 people filling the airport terminal to say goodbye.
Island Air, Hawaii’s then second-largest inter-island carrier, ceased operations on November 10, 2017. The 37-year-old airline had carried 13% of intra-Hawaii traffic in the first three quarters of 2017, contrasted with Hawaiian Airlines’ 80%.
An Air Berlin aircraft en route to Munich Airport.
OPERATION MONARCH – THE MONARCH AIR DEBACLE – 2017
British low-cost carrier Monarch Airlines, which was founded in 1967 and commenced operations in 1968, failed in 2017. The company had become a low-cost carrier in 2004 before abandoning its charter flying completely.
The collapse left some 110,000 British holidaymakers stranded in various parts of the globe. Just three years earlier, the airline had placed an order for 30 Boeing 737 Max 8 aircraft.  The order was valued at over $3.2 billion at list prices, and included options for an additional 15 aircraft.
When Monarch entered administration in 2017, it was the biggest airline collapse in U.K. history up to that point, although it would lose that title to Thomas Cook two years later.
After its sudden failure, the U.K. Civil Aviation Authority mounted Operation Monarch, a remarkable logistical achievement unique in aviation history. Operation Monarch was a rescue effort aimed at repatriating the failed airline’s passengers back more or less at the expected time.
Wow Air crewmembers at Keflavík International Airport.
2019 WAS A PARTICULARY BAD YEAR FOR AIRLINES
2019 was a bad year for airlines. Multiple airline shutdowns made the headlines as hundreds of thousands of passengers were left stranded.  The marquee names included Wow Air, Jet Airways, and Thomas Cook, the latter a 138-year-old concern, as well as 20 minor players.
GERMANIA  Founded in 1978, Germania was a privately owned carrier operating a fleet of 36 aircraft.  The airline started in Cologne as a charter operator under the name Special Air Transport and rebranded in 1986 to Germania. Its headquarters in its final years was in Berlin as was its primary base, Berlin Schönefeld Airport.   At the time it shut down, its mostly Airbus fleet comprised 30 aircraft including 19 A319s, six A321s, and five Boeing 737-700s.  It also had outstanding orders for 25 Airbus A320neos aircraft.
FLYBMI  Flybmi was a British regional airline that had been founded in 1987 as a subsidiary of British Midland International, itself an airline that operated from 1938 through 2012, at which point it was integrated into British Airways.  Flybmi offered scheduled service across the United Kingdom and the Continent with headquarters at East Midlands Airport in North West Leicestershire. At the time it shut down, its fleet consisted of 17 Embraer ERJ-135 and ERJ-145 jets.
WOW AIR  Icelandic ultra-low-cost carrier Wow Air, which had only begun operations in 2012, shut down in the overnight period of March 27 to 28, 2019, leaving thousands of passengers stranded across the globe. “We have run out of time and have unfortunately not been able to secure funding for the company,” said Wow Chairman Skúli Mogensen in a message to employees. At the time it flamed out, it had an all-Airbus fleet of ten A321 aircraft, including eight A321-200s and two A321neos.
A Jet Airways aircraft taking off at Newark Liberty International Airport
JET AIRWAYS  Indian carrier Jet Airways was founded in 1992 and flew its first mission in 1993.  The airline is currently in bankruptcy court and ceased operations on April 17, 2019.  Its mostly Boeing fleet included 124 aircraft with an additional 227 on order at the time it shut down, including 217 orders for the beleaguered 737 Max.  Jet had been the largest carrier in India from 2010 on with bases in Delhi, Mumbai, and Bengaluru.  It had over 16,000 employees at the time of its last flight.
AVIANCA BRASIL  Avianca Brasil was a Brazilian-based carrier that was founded in 1998 as an air taxi company.  It began to operate scheduled service in 2002, linking São Paulo, Rio de Janeiro, Macaé, and Campos. In its heyday it held 13.4% of the country’s domestic market and 7.3% of international flights.  The airline’s final fleet included seven Airbus A318s, one Airbus A319, and two Fokker 100s.
AIGLE AZUR  Aigle Azur, France’s second largest carrier was a low-cost carrier that ceased operations September 6, 2019, and shut down in early October after a bankruptcy court rejected several rescue packages.  Both Air France and EasyJet had made offers that they later withdrew.  The airline’s largest shareholders had been JetBlue Airways co-founder David Neeleman and China’s HNA Group.  Aigle Azur had operated an all-Airbus fleet of eight A320s, one A319, and two A330-200 airliners. It was founded in 1942 by Sylvain Floirat, with a fleet of several Junkers Ju 2 aircraft.
A Thomas Cook aircraft at the gate
THOMAS COOK AIRLINES  British tour operator and airline Thomas Cook Group ceased all operations on September 23, 2019, leaving tens of thousands of travelers, mostly British subjects, stranded.  The 178-year-old travel company said in a statement that it “concluded that it had no choice but to take steps to enter into compulsory liquidation with immediate effect.” The airline’s all-Airbus fleet at the time of shutdown included 27 A321-200s and seven A330-200s.
ADRIA AIRWAYS  Slovenian flag carrier Adria Airways, which operated scheduled and charter service, filed for bankruptcy and ceased operations on October 3, 2019. “Bankruptcy proceedings were initiated by the management of the company because of the company’s insolvency,” the airline said. Adria Airways was founded in 1961 as Adria Aviopromet, which translates to Adria Airways, with two used Douglas Commercial DC-6B aircraft purchased from KLM. It launched jet service in 1969 with a McDonnell Douglas DC-9.  The airline’s final fleet included 11 Bombardier CRJ900LRs, two CRJ700ERs, three Airbus A319s, and six Saab 2000s.
THE YEAR 2020 WASN’T MUCH BETTER
AIR ITALY After launching its first flights in mid-2018, Air Italy ultimately failed to build a successful or sustainable model. It ceased operations in February 2020.
Air Italy had  been an Italian airline that was reborn in 2018 under new ownership and strong backing from Qatar Airways. The airline could trace its routes back to the 1960s and flew under the Meridiana brand from the early 2000s until its rebrand.
Meridiana and the former Air Italy had combined to create an airline to rival Alitalia. It launched its first new intercontinental flight, New York to Milan, in June 2018 with subsequent expansions across the United States and Canada.
A Germanwings aircraft on taxi at London Heathrow
FLYBE Founded in 1979, Flybe, which was launched as Jersey European Airlines, with hubs in Birmingham, Manchester, and Exeter.
On March 4, 2020, the airline, by then Europe’s largest regional airline, collapsed into administration. Over 2,000 people lost their jobs as a result. It was the fourth British airline to have shut down in a period of two years, after Thomas Cook, Flybmi, and Monarch Airlines.
COMPASS AIRLINES Compass Airlines, a U.S. regional carrier, shut down in April 2020 after ending operations in partnership with both American Airlines and Delta Air Lines.  It had been a wholly-owned subsidiary of Northwest Airlines and, later, Delta Air Lines after the two merged.
Founded in 2007, it ceased operations on April 5, 2020, citing the reduced travel load in the first few months of the coronavirus pandemic and management’s failure to secure additional flying.
In its 14-year history, Compass operated over 1.5 million flights. In 2016, at its peak, Compass operated 62 aircraft – primarily the Embraer E175 –  and employed just over 2,000 people .
A Virgin America Airbus A320 taking off
EXPRESSJET ExpressJet Airlines, a regional airline that primarily operated flights for United Airlines, ceased operations on September 30, 2020. The move followed United’s decision to select rival CommutAir to operate its regional services.
The failure left 3,000 airline workers unemployed at a time when 35,000 from other airlines were furloughed amidst the height of the coronavirus pandemic.
GERMANWINGS Germanwings, meanwhile, was one of Lufthansa Group’s low-cost carriers. It began life as a way of competing with the likes of Ryanair and EasyJet but the pandemic won out, causing it to shut down on April 7, 2020.
Founded in 1997, the airline made headlines when a co-pilot, Andreas Lubitz,  committed suicide by crashing an Airbus A320 with 144 passengers and six crew members on March 24, 2015 into the French Alps, killing everyone on board.

AIRLINES THAT WERE SUBSUMED INTO OTHER AIRLINES THAT CONTINUE TO FLY
CONTINENTAL AIRLINES Continental Airlines, which was founded in 1934 and had grown into one of the country’s largest carriers despite great financial difficulties, merged with United Airlines in 2010 via a stock swap. Continental’s shares were acquired by UAL Corporation, which was then renamed United-Continental Holdings.
Aircraft with US Airways and American Airlines liveries after the merger of the two carriers
VIRGIN AMERICA Virgin America, founded in 2004 and commencing operations in 2007 after encountering some hurdles due to foreign ownership, was known for its colorful and stylish cabins, was acquired by Alaska Airlines in 2016. Originally, Alaska had been expected to continue to use the Virgin brand in some manner, but Virgin was fully subsumed into Alaska by 2018.
AMERICA WEST America West was a regional carrier founded in 1981 with its main hub at Phoenix Sky Harbor Airport. It acquired the much larger US Airways in 2005 and assumed that name. US Airways, in turn, disappeared as a brand when it merged with American Airlines in early 2013.
BARELY WORTH A MENTION
PRIMERA AIR, EOS, AND HOOTERS AIR Primera Air, founded in 2003 as a charter carrier, launched transatlantic flights in April 2018 and ceased operations on October 2 of that year. Eos, part of the slew of all-business class airlines that popped up in the 2000s, began operations in 2004 using Boeing 757s with 48 business-class seats on board and shut down in 2008. Finally, just for the reader’s amusement, we will mention Hooters Air, which operated from 2003 to 2006 and whose flights featured two “Hooters Girls” dressed in the restaurant uniform on each flight.
Basilio Alferow and Paul Riegler contributed research and reporting.
(Photos: Accura Media Group)