EcoJet UK, Royal Air Philippines and Dove Airlines have all entered administration or liquidation in 2026, with thousands of flights cancelled as jet fuel crisis hits aviation industry
Three airlines have plummeted into administration or liquidation in 2026 to date, resulting in every single flight being cancelled.
UK-based EcoJet, launched in 2023, pledged to become the world’s inaugural electric airline. Its fleet consisted of aircraft retrofitted with hydrogen-powered electric engines. EcoJet was scheduled to commence flights in 2024, starting with an Edinburgh to Southampton route, and had ambitions to extend its reach to mainland Europe with long-haul flights.
However, the firm has now entered voluntary liquidation, with Opus Restructuring taking on the role of liquidators in February. Despite these setbacks, Dale Vince OBE, the former founder of Ecotricity who launched the company, remains committed to his mission to electrify air travel.
Royal Air Philippines, a budget airline that started operations in 2018, offered flights to various Asian destinations, including China, Cambodia and South Korea.
The company initially operated as a charter airline in 2002 before branching out to provide commercial flights in 2018, utilising new Airbus A319 and A320 jets.
However, the company has since spiralled into administration, leading to approximately 4,000 flights being cancelled between January and March 2026. The airline is now striving to issue refunds to impacted passengers, reports the Express.
A statement uploaded to its website prior to it going offline read: “We are working on providing refunds and hope to resume flights at an unspecified date in the future.
“Thank you for your patience and understanding. We eagerly anticipate welcoming you aboard soon.”
Dove Airlines, headquartered in Kolkata in India, entered voluntary liquidation in January.
The carrier had ceased operating flights since 2022, when creditors confiscated its final remaining Cessna Citation aircraft.
The firm battled with insolvency proceedings for several years while trying to secure fresh investment, but when these attempts proved unsuccessful, the airline opted to enter voluntary liquidation under the Insolvency and Bankruptcy Board of India.
Simultaneously, the rising cost of oil stemming from the Iran crisis has placed additional strain on surviving airlines, with aviation fuel being amongst the most severely affected.
Today, April 17, Air Canada revealed it will halt services to New York’s JFK International Airport throughout the summer as the conflict in Iran triggers jet fuel shortages that have caused prices to rocket.
Canada’s national carrier announced on Friday that flights from Toronto and Montreal to JFK will end on June 1 and recommence on October 25.
Operations to the New York metropolitan area’s two remaining airports – LaGuardia and Newark – will persist.
Air Canada stated it will contact passengers affected by the suspension with alternative travel arrangements.
“As jet fuel prices have doubled since the start of the Iran conflict and some lower profitability routes and flights are no longer economic, we are making schedule adjustments accordingly,” a spokesman for the Montreal-based carrier said. The average cost for a gallon of jet fuel soared to 4.32 dollars (£3.19) on Thursday, up from 2.50 dollars (£1.84) the day before the conflict in Iran erupted, as per Argus Media.
Oil prices plummeted over 10% on Friday after Iran announced that the Strait of Hormuz is once again accessible for commercial tankers transporting oil from the Persian Gulf to global customers.
Fuel and labour costs are typically the most significant yearly outlays for airlines.
Delta Air revealed this month that the bill for increased fuel would add 2 billion dollars to its second-quarter expenses. Airlines including JetBlue and United Airlines are hiking bag fees to counterbalance soaring fuel costs while others reduce services.
In an exclusive interview with the Associated Press on Thursday, International Energy Agency director Fatih Birol stated Europe has “maybe six weeks” of remaining jet fuel supplies and warned that the global economy is facing its “largest energy crisis”.