UK airline collapses over jet fuel crisis – liquidation meeting on May 14
Just two years after launching flights, the airline has sent its fleet of Boeing 737s into storage.
The UK's newest airline, which has been operating an impressive fleet of Boeing 737 aircraft, has collapsed amid soaring jet fuel prices and throwing the careers of over 160 staff into jeopardy. Accountants acting on behalf of Ascend Airways, which began operations only two years ago, announced on April 28 that the carrier had decided to close operations and surrender its Air Operators’ Certificate (AOC) to the UK Civil Aviation Authority (CAA).
It has also returned its fleet of seven Boeing 737s to lessors with immediate effect. The airline operated a fleet of six Boeing 737 MAX 8s and a single 737-800, and operated on an Aircraft, Crew, Maintenance, Insurance (ACMI) basis on behalf of other carriers. These included TUI, Oman Air, Air Sierra Leone and SpiceJet. While the current status of Ascend Airways' 161 employees remained unclear at the time of the announcement, it was widely anticipated that most would lose their jobs.
The London Stansted-based airline said all staff had been paid in full before surrendering the AOC.
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The company was part of the Avia Solutions Group (ASG), which also saw its SmartLynx airline cease trading last year, with debts reported to exceed €240million (£208million).
According to a notice published in The London Gazette on May 13, Ascend Airways Limited will hold a creditors' meeting on Thursday (May 14) at 3pm. The notice adds that the type of liquidation the business has undergone is a Creditors' Voluntary Liquidation (CVL) and Stuart David Morton and Matthew Robert Howard of Price Bailey LLP, based in Norwich, have been appointed as liquidators.
According to a statement by Price Bailey, “Ongoing geopolitical tensions in the Middle East have contributed to a sustained increase in jet fuel prices. This volatility has created a challenging outlook for the upcoming summer season, with many carriers already reducing capacity.
“For Ascend Airways, these external pressures have compounded the structural challenges of operating a UK AOC within the European ACMI market. A lack of reciprocal wet leasing rights for UK carriers, combined with a higher cost base, has made the UK certificate a more expensive and less agile option compared to EU AOCs.”
The statement also cited reliability issues with the CFM LEAP engines fitted to the airline’s Boeing 737s, which had affected the airline's performance by increasing maintenance requirements and reducing aircraft availability. Mr Bailey added that Ascend Airways had completed its ACMI obligations for the winter 2025/26 season in full and that a “managed wind-down of operations had been achieved to minimise disruption to customers, consumers and aircraft lessors".
The decision to hand back the company’s AOC was taken after the airline’s final flight (SYG187) landed at London Stansted on the morning of April 28. The aircraft had been on lease to SpiceJet in India and was returning to the UK at the time.
According The Sun, Ascend Airways had been unsuccessful in securing wet-lease contracts for the summer months with overseas carriers, stating that airlines operating within the EU could operate with 40% lower cost than the UK airline, rendering Ascend Airways simply unable to compete. Soaring UK employment costs, other domestic expenses and a general decline in ACMI work contributed to the airline’s failure. The source added that the airline had fallen behind on payments due to leasing companies.
The closure of Ascend Airways marks a further consolidation in the operations of the wider ASG parent company. Earlier this year, the Group announced that its Slovakian-based wet-lease airline AirExplore would be combined with Lithuanian-based VIP carrier KlasJet. The move followed the collapse of SmartLynx, its Latvian charter carrier, along with its Maltese subsidiary in 2025.
Following the outbreak of conflict in the Middle East and the blocking of the Strait of Hormuz by Iran, jet fuel prices have spiked over $100 (£74) per barrel, significantly increasing airfares and putting pressure on airline profitability. Some estimates suggest it currently costs over $340,000 (£251,200) to fuel an Airbus A380 - nearly double previous levels.
