Global airlines face bankruptcies as fuel prices surge 70% to $181 per barrel

Rising aviation fuel costs have triggered a wave of bankruptcies and forced restructuring across the global airline industry. While major carriers are raising fares to offset expenses, small airlines and low-cost carriers (LCCs) are exiting the market due to unsustainable operating costs. The crisis is compounded by geopolitical instability, which forces carriers to divert routes and incur additional losses. The surge in fuel prices has already pushed several carriers to cease operations or overhaul their business models. According to RBC data, the list of affected airlines includes Slovenia's AlpAvia, France's Joy Air, and Mexico's Magnicharters. Regional players such as Latvia's Air Baltic Corp AS and the UK's Ascend Airways are also facing difficulties, while the U. S. budget carrier Spirit Airlines has entered a deep restructuring process to avoid total collapse. Macroeconomist Artem Loginov told Pravda. Ru that small airlines are the first to suffer because they lack the financial reserves necessary for long-term risk hedging, leading directly to fleet reductions and flight cancellations.