The arrival of autumn has brought a challenging period for many small and low-cost airlines around the world.
Iceland-based Play Airlines and Sweden’s Braathens Airlines halted all operations within days of each other, leaving hundreds of passengers stranded at airports across Europe.
Around the same time, U.S.-based Verijet and Kachina Air also filed for bankruptcy in October 2025.
At the end of the month, UK-based Eastern Airways added to the industry turmoil by announcing on 27 October that it was cancelling flights across Northern England and Scotland.
A New Blow from Asia: AirJapan Shuts Down
Similar developments have been seen in the Asian market as well.
All Nippon Airways (ANA) has decided to shut down its low-cost brand AirJapan, which it established in 2022. ANA announced that it will continue operating only under the ANA and Peach Aviation brands from now on.
AirJapan operated out of Tokyo Narita Airport, serving routes between Singapore, Seoul, and Bangkok with two Boeing 787-8 aircraft.
The decision to cease operations came as the airline struggled to compete with strong regional rivals such as Singapore Airlines’ Scoot and AirAsia X.
Global Low-Cost Crisis
The year 2025 has witnessed a historic wave of bankruptcies among low-cost carriers.
Some of the airlines that have ceased operations or filed for bankruptcy this year include:
- Ravn Alaska: Ceased operations in August 2025.
- Spirit Airlines: Filed for bankruptcy for the second time on 29 August 2025.
- Play Airlines: Filed for bankruptcy in Iceland on 29 September 2025.
- Braathens Airlines: Filed for bankruptcy for its Airbus operations on 30 September 2025.
- Verijet: Filed for Chapter 7 bankruptcy in October 2025.
- Kachina Air: Filed for Chapter 11 bankruptcy protection on 24 October 2025.
Future Plans and Closure Timeline
According to ANA’s announcement, the AirJapan brand will be completely phased out by March 2026.
The final flights will take place from Tokyo Narita Airport on 29 March 2026.
The company plans to redirect its remaining resources towards expanding the ANA and Peach Aviation brands.
Industry Assessment
According to aviation reports, fuel costs, supply chain disruptions, and weak passenger demand are putting pressure on the low-cost airline model.
The slowdown in post-pandemic recovery, rising global MRO (maintenance, repair, and overhaul) costs, and increasing leasing rates continue to threaten the sustainability of smaller carriers.
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