Regional airline denies bankruptcy rumors, asks government for help | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Given the extremely high cost of operations, smaller airlines serving specific markets periodically go bankrupt.

Air Belgium and Silver Airways were among the carriers that shut down operations in 2025, while the most high-profile turnaround of the year was Florida-based Spirit Airlines (SAVE) .

After announcing that it was filing for bankruptcy in November 2024, the budget airline emerged from it by the spring by going private and handing over control to a group of its biggest bondholders.

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Libyan Airlines continues to represent war-torn country

In other parts of the world, flag carrier Libyan Airlines has been denying bankruptcy rumors and claiming that flights are going on as scheduled.

The Middle Eastern airline serving the country in which the United States has conducted multiple military interventions in the 2010s was launched in 1965 and has in recent years been running flights out of Mitiga International Airport (MJI) in the country’s capital.

Tripoli International Airport (TIP) has been closed since 2014 amid continued civil unrest that followed the toppling and execution of Muammar Gaddafi in 2011. The airport was heavily bombed in 2014 as a group of Islamist militias tried to seize control from Libya’s House of Representatives.

As reported by local news outlets Libyan Express and The Libya Observer, the carrier is currently facing significant financial and technical challenges, but its representatives deny that bankruptcy is on the horizon as they seek the current government’s assistance in reviving the war-torn country’s primary airline.

On May 20, Tripoli International Airport reopened to certain private and ambulatory flights as the internationally-recognized government formed in 2021 evaluates which of the runways remain usable.

Despite periodic stops and starts, Libyan and international airlines periodically run flights from Tripoli to Egypt, Tunisia, and Türkiye.

Libya has seen the breakout of two major civil conflicts since 2011.

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Libyan Airlines promises ‘unwavering commitment to restructuring and rejuvenating the airline’

“Company spokesperson Ahmed Al-Taira emphasized the management’s unwavering commitment to restructuring and rejuvenating the airline,” Libyan Express reports.

“He also issued an urgent appeal to the Libyan government and relevant authorities, urging them to provide the essential support required to safeguard this critical national institution.”

Al-Taira further stated that the airline has received almost no government assistance after sustaining extensive damage to its fleet following the fighting for Tripoli Airport — any flights run by Libyan Airlines were done on the two planes that remained unscathed during the second civil war.

While a ceasefire was eventually reached in 2020, periodic strikes between warring militia groups continue to break out.

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Despite the severe financial crisis faced by the airline, its continued operations have become a rare symbol of unity in a country roiled by prolonged civil conflict.

It has also served as a key connector to the country that sees very limited service from international airlines (Turkish Airlines and Italy’s ITA Airways are among those running certain flights to Libya).

“Earlier on Wednesday [July 2], Libyan Airlines’ leadership issued a comprehensive statement outlining the root causes of the ongoing crisis,” Libyan Express reported further.

“The company has faced delayed salary payments and the suspension of numerous employee benefits — circumstances that management described as largely beyond their control.”