A number of low-cost airlines have either teetered on the verge of or dove fully into bankruptcy proceedings in the first half of 2025.
After an auction produced nothing other than a stalking horse bid that would not even begin to cover the debts owed to creditors, Fort Lauderdale-based Silver Airways officially ran its last flight on June 11.
Spirit Airlines (SAVE) recently submitted regulatory filings admitting “substantial doubt” about its ability to stay in business while, in an entirely different part of the world, Qantas Airways (QABSY) shut down Jetstar Asia after high supplier and airport fees made keeping the low-cost subsidiary operational unsustainable in a Singaporean market marked by much competition.
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‘The anticipated transaction with a prospective investor has not materialized’: Mango Airlines
The South African market is also pushing out some airlines as Cape Town-based budget carrier Mango Airlines prepares to wind down operations after one last-minute investor pulled away from a potential deal.
The airline has been grounded since 2021 after losing its operating license over unpaid airport fees but went through a years-long legal bankruptcy procedure in which a South African court granted it time to look for a bailout and waited to see if the government would step in with help like it did for flag carrier and subsidiary South African Airways.
Related: Low-cost airline to pull all Hawaii flights amid low demand
South African outlet Business Tech was the first to report that Mango Airlines had voluntarily agreed shut down operations to pave the way for an eventual liquidation. The potential buyer, identified as investment firm Ubuntu Air Services Proprietary Limited, was reportedly spooked by the lengthy court processes that drained any existing funds and made eventually restarting operations increasingly unlikely.
“Mango Airlines SOC Limited, currently under business rescue, wishes to inform all customers and stakeholders that the anticipated transaction with a prospective investor has not materialized,” the airline said in a statement. “Consequently, the Business Rescue Practitioner will be proposing an Amended Business Rescue Plan that outlines a Structured Wind-Down of the company.”
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Need a refund from Mango Airlines? You’re likely out of luck
The airline operated a fleet of Boeing 737-800 (BA) aircraft and flew to almost exclusively domestic destinations such as Johannesburg, George, Bloemfontein and Durban from Cape Town.
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When it comes to refunds, passengers who saw booked flights abruptly called off when Mango first ended up grounded in 2021 were initially given hope of refunds in June 2025 when business rescue practioner Sipho Sono said to register any claims for compensation online.
But with the airline now shutting down with millions in debt, any passengers would be considered unsecured creditors unlikely to be prioritized in liquidation proceedings given the much higher amounts owned to lenders and airports. The status of any submitted claims have not seen progress in the ensuing months and is now even more unlikely given the airline’s shutdown.
“Mango’s grounding caused a lot of frustration and financial loss, especially to budget-conscious travelers who relied on the airline,” South African aviation analyst James Letsoalo said to local news outlets in June 2025. “Giving these customers a mechanism to recover their funds is a necessary part of the airline’s recovery process.”
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