As both jet fuel prices hit new highs and the airspace in much of the Middle East remains closed amid periodic flare-ups following the U.S. attack on Iran, multiple airlines have not been able to survive the massive hit to their services.
Local Middle Eastern major players such as Emirates, Etihad and Qatar Airways are the carriers that continue to serve cities such as Dubai and Doha on a reduced schedule while, earlier in the year, Maldives-based BeOnd shut down for the summer due to the high cost of jet fuel and security situation at its main Dubai base in the hopes of restarting later in 2026 (those plans have so far not materialized).
Airlines in other parts of the world that were dealt the final blow by skyrocketing jet fuel prices since the start of 2026 include Mexico’s Magnicharters, British Ascend Airways and, perhaps most famously, longtime Florida low-cost carrier Spirit Airlines.
Pakistani airline Serene Air shuts down operations and cancels all flights
In the South Asian nation of Pakistan, domestic airline Serene Air is the latest to have shut down all operations after what was initially presented as a temporary pause. The country’s aviation regulator, the Pakistan Civil Aviation Authority, suspended the airline’s Air Operator Certificate (AOC) following an audit that found that all five wide Airbus A330-200 and Boeing 737-800 planes in its fleet were “unserviceable.”
The latest reporting out of the country says that, after Serene Air tried and failed to regain its suspended AOC within the necessary time period, the airline is now shutting down permanently.
Related: Travel agency files for bankruptcy, dozens of flights canceled
The airline’s main hub at Allama Iqbal International Airport (LHE) in Lahore as well as its offices in Islamabad, Karachi, Faisalabad and Multan have all been closed while staff working at these offices have been asked to come in to collect any belongings.
Image source: Shutterstock
What was Serene Air, a Pakistani airline with big ambitions but failed execution
Serene Air was launched in 2017 with ambitious plans to bring the low-cost model popular in other parts of Asia to Pakistan. While the airline ran a large network of domestic flights and limited service to the United Arab Emirates, it quickly became plagued with operational setbacks related to the high costs of aviation.
Frequent flight cancelations in 2024 and 2025 prompted investigations that found an aging fleet that ultimately led to the revoked operating license.
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More airlines that shut down and filed for bankruptcy in 2026:
- Flamingo Air and Aerodiana: The regional airlines with large client bases among tourists to the Bahamas and Peru, respectively, currently have suspended AOCs after fatal accidents in their home countries in July 2026.
- Spirit Airlines: The largest airline shutdown of the year occurred when Spirit Airlines canceled all remaining flights on May 2. Although the airline had filed for Chapter 11 protection twice before, the skyrocketing price of jet fuel dealt the final blow.
- Magnicharters: The Mexican low-cost airline canceled all flights and filed for bankruptcy in a shutdown that left thousands stranded.
- Starflite Aviation: Houston-based Starflite Aviation had its AOC license revoked in March 2026, amid FAA claims that owners falsified pilot training records to bypass safety audits.
- AlpAvia: Slovenian charter airline AlpAvia also shut down in March 2026 due to financial problems.
Related: Another airline files for bankruptcy, will liquidate