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Skift • Meghna Maharishi

2025 Airline Roundup: Layoffs, Bankruptcies, Failed Mergers and the Rise of AI Pricing

Airlines in 2025 faced sweeping restructuring — mass layoffs, multiple Chapter 11 filings and a string of collapsed merger talks — even as carriers experimented with AI-driven pricing tools and drew scrutiny from Congress. This year’s turbulence reshaped network plans, labor costs and strategic M&A calculus across the industry.

2026-01-04T03:30:02.529300-08:00

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Brazil clears United's $100M investment in Azul, raising stake to ~8% in Chapter 11 rescue

2026-01-02T04:44:39.092835-08:00

ch-aviation

India approves $35M payout to former Kingfisher Airlines staff

2026-01-01T20:34:15.295185-08:00

ch-aviation

SIU opens formal corruption probe into South African Airways

2025-12-30T09:36:46.573542-08:00

News Timeline

Skift

2025 Airline Roundup: Layoffs, Bankruptcies, Failed Mergers and the Rise of AI Pricing Airlines in 2025 faced sweeping restructuring — mass layoffs, multiple Chapter 11 filings and a string of collapsed merger talks — even as carriers experimented with AI-driven pricing tools and drew scrutiny from Congress. This year’s turbulence reshaped network plans, labor costs and strategic M&A calculus across the industry.

2026-01-04T03:30:02.529300-08:00

2025 Airline Roundup: Layoffs, Bankruptcies, Failed Mergers and the Rise of AI Pricing

aeroflap.com.br

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Brazil clears United's $100M investment in Azul, raising stake to ~8% in Chapter 11 rescue Brazil's antitrust regulator CADE approved United Airlines' $100 million investment in Azul, increasing United's stake to about 8% without restrictions. The cash injection is part of Azul's U.S. Chapter 11 restructuring and supports the carrier's broader recapitalization, fleet and debt rebalancing plans.

2026-01-02T04:44:39.092835-08:00

Brazil clears United's $100M investment in Azul, raising stake to ~8% in Chapter 11 rescue

ch-aviation

India approves $35M payout to former Kingfisher Airlines staff India has approved a $35 million compensation payout to former Kingfisher Airlines staff, authorizing distribution of funds to ex‑employees. The government decision moves a long‑running settlement process into a final phase and opens the way for payments to eligible former staff.

2026-01-01T20:34:15.295185-08:00

India approves $35M payout to former Kingfisher Airlines staff

ch-aviation

Capital A pushes restructuring to early Q1 2026, prolonging uncertainty for AirAsia X and creditors Capital A has postponed its planned restructuring until early Q1 2026, extending uncertainty around the previously announced consolidation with AirAsia X and delaying creditor resolution. The delay prolongs questions over timing of asset transfers, regulatory approvals and debt-restructuring that underpin the group's recovery plans.

2026-01-01T16:22:30.090483-08:00

Capital A pushes restructuring to early Q1 2026, prolonging uncertainty for AirAsia X and creditors

FreightWaves

Major Airline Mergers Fail to Materialize in 2025 as Carriers Prioritize Cost‑Cutting In 2025, proposed large airline mergers largely failed to materialize as major carriers shunned transformational deals, instead prioritizing aggressive cost‑cutting and squeezing efficiency from existing networks and fleets. Across regions, executives favored doing more with less over scale‑driven transactions this year.

2025-12-31T04:13:58.129435-08:00

Major Airline Mergers Fail to Materialize in 2025 as Carriers Prioritize Cost‑Cutting

Airline Economics

Air Nostrum repays €20m SEPI COVID-era loan early Spanish regional carrier Air Nostrum made an early repayment of €20 million to SEPI on 29 December, returning funds it accessed during the COVID-19 pandemic. The repayment is part of the airline's wider financial restructuring and reduces state exposure from pandemic support arrangements.

2025-12-30T11:56:42.979603-08:00

Air Nostrum repays €20m SEPI COVID-era loan early

ch-aviation

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SIU opens formal corruption probe into South African Airways South Africa's independent corruption watchdog, the Special Investigating Unit (SIU), said it has formally added South African Airways (SAA) to an ongoing corruption probe. The SIU's formal inclusion places the airline under its investigative remit and signals intensified scrutiny of SAA-related transactions.

2025-12-30T09:36:46.573542-08:00

SIU opens formal corruption probe into South African Airways

Economic Times

ICRA cuts FY26 domestic traffic to 0–3%; India’s airlines face Rs17,000–18,000 crore hit ICRA has trimmed India’s FY2026 domestic air passenger growth forecast to 0–3% (from 4–6%) and now projects the sector could record a net loss of Rs17,000–18,000 crore for the year. The downgrade cites geopolitical tensions, a recent aircraft accident, US tariffs and operational disruptions including IndiGo.

2025-12-30T01:35:29.990828-08:00

ICRA cuts FY26 domestic traffic to 0–3%; India’s airlines face Rs17,000–18,000 crore hit

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Aircraft Demand: Airline Distress & Consolidation News

2025 Airline Roundup: Layoffs, Bankruptcies, Failed Mergers and the Rise of AI Pricing

Brazil clears United's $100M investment in Azul, raising stake to ~8% in Chapter 11 rescue

India approves $35M payout to former Kingfisher Airlines staff

SIU opens formal corruption probe into South African Airways

News Timeline