Running its first flights two years after launching in 2016, low-cost airline Flybondi grew quickly into the second-largest airline in Argentina after state-owned flag carrier Aerolíneas Argentinas.

A fleet of 15 Boeing 737-800 planes allowed the airline to fly to 23 destinations across Argentina and neighboring countries, including Brazil, Paraguay, and Peru.

But since June 2027, Flybondi has remained largely grounded, as the spike in jet fuel prices caused a snowballing financial hole and creditors froze financial accounts over missed payments.

Amid hundreds of flight cancellations, Brazilian authorities blocked the airline from selling any new flights into the country in July. The 2,500 flight cancellations in summer 2026 affected more than 350,000 passengers.

Flybondi files for creditor protection in Argentina, remains grounded

At the start of September, Flybondi grounded all but one of its Boeing 737 planes and canceled all flights for what it initially said would be four weeks. The airline, however, has not flown for the last 58 days, and on Oct. 2, it filed for creditor protection in Argentina’s National Commercial Court No. 24, Aviacionline reported.

The creditor protection proceedings (called “concurso preventivo de acreedores” in Argentina) allow a company to restructure its debts under deadlines and the supervision of a court-appointed trustee. The process is the closest equivalent to a Chapter 11 bankruptcy in the U.S.

Related: Low-cost airline cancels all flights for 4 weeks, shuts down

The case was assigned to Judge Guillermo Mario Pesaresi, while law firm Grispo & Asociados is representing Flybondi in the case.

Several local Argentine outlets reported that the airline owes debts of more than $122.4 million to creditors that include tax authorities and aircraft lenders. The exact extent of its debt as a private company has not been publicly disclosed.

Flybondi was at one point a major player in the South American low-cost airline space.

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What is happening with Argentine low-cost airline Flybondi in October 2026

Buenos Aires-based newspaper La Nación previously reported that a court-supervised restructuring may involve Flybondi being absorbed into the local logistics and postal giant OCA Air, according to Air Data News.

As OCA Air is not currently in the business of commercial aviation, many serious questions about Flybondi’s post-restructuring future remain. Communications executive Lucía Ginzo left her role at the airline in late May 2026.

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Over the last few months, the airline’s website has been reopened, allowing travelers to book flights into the fall of 2026, and then taken down several times. It currently shows visitors a 404 page.

Other airlines that shut down or filed for bankruptcy in 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 to its operations.
  • Magnicharters: The Mexican low-cost airline canceled all of its flights and eventually shut down in a collapse 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 also shut down in March 2026 over financial problems.

Related: Another airline in bankruptcy, flights canceled