IATA reports 28 new airlines and 28 shut downs in 2025

IATA reported (06-Feb-2026) the following highlights for airlines entering and exiting the market in 2025:

• 28 new airlines commenced operations, marking the lowest number of market entrants since 1999 and continuing the decline in new airline launches since 2021;
  • IATA noted the spike in new airlines in 2021 was "driven by numerous post-COVID reorganisations that temporarily boosted these figures", adding: "Since then, the trend has reversed". The association stated: "The slowdown in new airline creation does not point to market saturation. Instead, it reflects a combination of economic, supply chain and geopolitical hurdles";
  • Factors impacting the conditions for new airline creation include:
    • Aircraft, engine and spare parts shortages, resulting in constrained fleet availability and increased costs;
    • Policy uncertainty, which complicates strategic planning for new carriers;
    • Stricter regulatory and certification requirements, which increase the complexity of launching operations;
• 28 airlines ceased operations, matching the number of new entrants and suggesting that the industry "has entered a period of relative stability compared with the volatility of the early 2020s";
  • 21 of the ceased airlines were full service carriers, four were low cost carriers and three were leisure airlines. [more - original PR]