With jet fuel prices continuing to sit at highs amid a lack of a ceasefire between the U.S. and Iran, numerous small and mid-size airlines have ended up having to shut down since the start of 2026.
For airlines testing “green” aviation, the lack of funds and investor unwillingness to take a risk can be even more astute. In January 2026, a startup once envisioned as the world’s first zero-emission regional airline entered voluntary liquidation. The plan, which British green investor Dale Vince launched with an early investment of £1 million of his own funds, was to convert the kerosene engines of old Twin Otter and ATR 72 planes into hydrogen-electric ones.
Ecojet Airlines unveiled its branding and flying plans but ultimately never got off the ground after lack of additional investment interest and missed deadlines to demonstrate progress to regulators led to an eventual decision to shut down.
Stralis Australia to shut down after hydrogen-electric air taxi model struggles to get off the ground
Maeve Aerospace, a Dutch hydro-electric airplane developer, was declared insolvent by a Dutch court in July 2026 after the initial plan that caught the attention of multiple investors ultimately failed to take off.
A similar situation has now fallen upon Stralis Australia, a local airline startup based in Brisbane that was also testing technology to run hydrogen-electric air taxi flights in the country.
Related: Here is why one airline CEO keeps saying sustainable fuel is a myth
The company founded by Australian airspace engineers Bob Criner and Stuart Johnstone had been testing emission-free, high-temperature proton-exchange membrane (HTPEM) fuel cell technology to run short domestic flights since 2021.
It found its first customers, aviation logistics provider Eviate Aviation in California, and had the interest and backing of major carriers such as Air New Zealand.
Stralis Australia
Why and when is Stralis Australia closing down
But ultimately, the founders said that they “could not close the gap between proof and commercial readiness quickly enough to sustain the business.” The high costs of regulatory approval and lack of hydrogen-electric infrastructure for early adapters to enter the market were named as the major roadblocks.
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As a result, Stralis announced plans to wind down operations by the end of August. Earlier plans had been to launch the first commercial flights from Brisbane on six Beechcraft 1900D-HEs planes that German startup Evia Aero had given to the airline by the first half of 2027.
As no passenger flights have yet been launched, Stralis’ shutdown does not directly affect passenger but takes the local industry one step farther from gaining headwinds on sustainable aviation.
More airlines that shut down 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 was also shut down in March 2026 due to financial problems.
Related: Another airline files for bankruptcy, will liquidate