The aviation industry is ending 2025 with yet another stark reminder of how fragile the airline business has become. Greensboro-based Jet It, once a fast-rising fractional jet airline, has officially filed for Chapter 7 bankruptcy, confirming the permanent end of its operations and triggering full liquidation. All flights remain canceled, and no restructuring is planned.

While Jet It has not operated since 2023, the December 24 bankruptcy filing in the U.S. Bankruptcy Court for the District of Delaware marks the final step in a long financial unraveling. Unlike Chapter 11 bankruptcy—commonly used by airlines seeking to restructure debt—Chapter 7 signals the complete shutdown of a company, with assets sold off to repay creditors.

Jet It’s downfall adds to a growing list of airline bankruptcies in 2025, a year marked by rising fuel costs, shrinking demand, and mounting operational pressure across both commercial and private aviation sectors.

Jet It is far from alone. Throughout 2025, multiple airlines and charter operators have either filed for bankruptcy or abruptly shut down operations. Commercial carriers such as Play and Blue Islands stunned passengers earlier this year with last-minute cancellations and grounded fleets.

The charter and private aviation sector has been hit especially hard. Florida-based Verijet and Montana charter operator Corporate Air both entered bankruptcy proceedings in October. Shortly afterward, Alaska-based Kenai Aviation ceased all operations in November, cutting off critical air connections between Anchorage, Fairbanks, and smaller communities including Kenai, Homer, and Seward.

Kenai Aviation’s owner, Joel Caldwell, captured the desperation many operators are feeling in a public statement: “We need capital, we need partners, we need a lifeline. That investor is out there—we just need to find them.” For many airlines in 2025, that lifeline never materialized.

Jet It launched in 2022 with a business model centered on fractional aircraft ownership—a fast-growing niche in private aviation. Instead of purchasing an entire private jet, customers bought shares in a HondaJet, receiving a guaranteed number of flight hours flown by the airline’s pilots.

At launch, Jet It promoted hourly rates as low as $1,600, positioning itself as an affordable alternative to full private jet ownership. The strategy initially worked. At its peak, Jet It operated more than 18,000 flight hours per year and briefly ranked as the 12th-largest private jet operator in the United States.

However, the fractional airline model comes with heavy fixed costs. Aircraft maintenance, pilot training, insurance, hangar fees, and—most significantly—jet fuel prices began to rise sharply. As customer demand softened, Jet It struggled to maintain cash flow while servicing its expanding debt.

According to bankruptcy filings, Jet It accumulated more than $36.2 million in liabilities, including $9.7 million in unsecured claims. Its largest creditor is World Fuel Services, owed approximately $735,695. American Express is listed as being owed over $600,000, while additional creditors include PIC Card Services LLC and Jetex Flight Services.

One of the most striking claims comes from FlightSafety International, a Berkshire Hathaway subsidiary, which states it was never paid $400,981 for pilot training services. This highlights how even essential operational expenses went unpaid as the airline’s finances deteriorated.

By opting for Chapter 7 bankruptcy instead of restructuring, Jet It effectively acknowledged that recovery was no longer realistic. With no active flights, no incoming revenue, and limited remaining assets, liquidation became inevitable.

For travelers, Jet It’s collapse reinforces an unsettling trend: fewer options in the charter and private aviation market, especially for customers seeking flexible, mid-priced alternatives to traditional private jet ownership.

For investors, Jet It’s story is a cautionary tale. Rapid growth, aggressive pricing, and optimistic demand forecasts can quickly unravel in an industry where operating costs are volatile and margins are thin. Fractional ownership airlines, once viewed as a promising growth segment, are now facing renewed skepticism.

Jet It’s Chapter 7 bankruptcy is not just the end of one airline—it is a signal of broader instability across the aviation industry. As 2026 approaches, analysts expect continued consolidation, tighter financing, and increased scrutiny of airline business models, particularly in charter and regional markets.

For now, Jet It’s fleet is grounded, its assets headed for liquidation, and its meteoric rise officially over. The question facing the industry is not whether change is coming—but which airlines are financially resilient enough to survive it.