A sudden airline shutdown or bankruptcy can have reverberations that in some cases last for months, or even years.
After UK-based regional airlines Eastern Airways and Blue Channels both collapsed within a few weeks of each other in fall 2025, a community in Cornwall was left without flight access, and to avoid disrupting travel, had to use larger planes that ran mostly empty.
When Icelandic company Play Airlines fell in an abrupt bankruptcy, local tour operator Tango Travel also had to shut down in a domino effect, as many of the tour packages it sold relied on flights from the now-defunct airline.
Tailwind Air files for Chapter 11 bankruptcy two years after transitioning to charter flights
Based out of Westchester County (HPN) and Sikorsky Memorial (BDR) to connect multiple regions in the Northeast with Manhattan, Tailwind Air launched in 2014, but began operating in 2019 after receiving the necessary licenses. After struggling to turn a profit, it canceled all commercial flights and transitioned to a charter-only airline in 2024, Simple Flying reported.
At the time, the airline cited unprofitability and lack of demand as reasons for its shutdown. As first reported by the BankruptcyObserver watchdog, Tailwind Air has now filed for Chapter 11 protection in the Eastern District of Virginia bankruptcy court on January 15, 2026.
Related: Global airline cancels all flights in Chapter 7 liquidation plan
Plans to run charter flights also failed to materialize, and the carrier lost its AOC operating license in January 2025.
The filing reports company assets of less than $100,000 and liabilities of between $1 and $10 million owed to between 50 and 99 creditors. Kevin M. O’Donnell of Henry & O’Donnell law firm is representing Tailwind Air in the bankruptcy proceedings.
Tailwind Air was a seaplane company that launched in 2014.
Tailwind Air
Why did Tailwind Air shut down in 2024 and file for bankruptcy now?
The airline has not released a statement on the bankruptcy proceedings. In 2025, CEO Alan Ram said the airline had been actively seeking investors and partners to restart potential seaplane operations from Boston, according to Simple Flying.
The airline had an extensive seaplane fleet of Cessna 208 Caravan, SOCATA TBM, and Dassault Falcon 900 aircraft, among others.
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Each plane had fewer than 60 seats, while one-way prices ranged from $400 to $800 per ticket.
Its most flashy route went from New York to Boston, but it also tested services to cities such as Newport, Provincetown, and Nantucket that ultimately failed to bring in the traffic to make them financially viable.
These airlines filed for bankruptcy in 2025:
- Spirit Airlines (Spirit Aviation Holdings, Inc.): Filed for Chapter 11 bankruptcy for the second time on August 29,2025.
- Ravn Alaska: Ceased operations in August 2025 after earlier Chapter 11 proceedings; shut down flights and folded into other operations such as New Pacific.
- Corporate Air: Filed for Chapter 11 bankruptcy (restructuring) in September 2025 as part of a planned sale, according to Bondoro.
- Play Airlines: The Reykjavik-based airline shut down operations and entered involuntary bankruptcy in September 2025.
- Braathens Airlines:The airline was forced to file for bankruptcy and canceled all of its flights in September 2025.
No additional information on how the airline plans to restructure is available at this time.
Related: International travel company shuts down in bankruptcy, travelers stranded