IATA Reports Equal Number of New Airline Launches and Shutdowns in 2025

28 New Airlines Enter The Market and The Same Number Exit, The Lowest Since 1999

According to the International Air Transport Association (IATA), a total of 28 new airlines were launched, and 28 airlines were closed in the year 2025. This is a sign of airline relative stability after post-pandemic volatility. This two-fold number of launches and closures is the fewest number of new airline beginnings in 1999. As economic headwinds persist, supply chains are constrained, and the regulatory environment grows increasingly complex, making the industry dynamic tame, according to the data released by the IATA in early February 2026.

Details of New Entrants and Exits

The 28 airlines that ceased operations in 2025 on the exit side consisted of a blend of full-service, low-cost, and leisure airlines. The IATA breakdown indicated that 21 of them were full-service carriers, four were low-cost carriers, and three were leisure-oriented carriers.

Verified data from aviation records of IATA shows the number of exits during 2025. This includes Bees Airlines (Romania), which lost its Air Operator Certificate in February 2025; Air Dilijans (Armenia), which ceased in early February. Play (Iceland), which terminated operations in September 2025 after struggling with model shifts and financial sustainability. Additionally, flag carrier Air Albania suspended operations in December 2025 amid compliance and ownership challenges. Other carriers that ended service in 2025 include SKS Airways, Aerolínea Lanhsa, Sunwing Airlines, Ravn Alaska, Jetstar Asia, and Cham Wings Airlines, among others listed in aviation industry compilations. These exits span a range of business models, low-cost, regional, and full-service, underscoring the diverse pressures that can lead to airline shutdowns even as new carriers attempt to enter the market.

The equal exits and entries actually imply that the net world airline count has actually stood still over the year, differing from the past years where the figures of closures have surpassed the figures of commencement, which has resulted in the dynamics of consolidation and market exits.

Market Forces That Influence Airline Entry and Exit Trends

These systemic issues in the aviation ecosystem in the year 2025 were a result of the remnant bottlenecks in the supply chain. The IATA has cited it as one of the major limitations in the growth and stability of the airlines. Aircraft and engine production backlogs, where the global delivery deficit is now in the thousands, have constrained fleet growth not only by existing carriers but also by new airline start-ups, hence impacting the rate of new airline start-ups. The over 17,000 aircraft orders on the backlog, as cited in other IATA studies, indicate that production capacity will continue to be stretched way into the late 2020s, and possibly have a ripple effect on carrier planning and strategy of all sizes.

In addition, high regulatory and certification standards in most markets, coupled with macroeconomic headwinds, which include inflationary pressures and cost of finance, have increased entry barriers among potential airlines.

Global Airline Market Churn Since 1991: Entry–Exit Trends and Structural Slowdown

(The number of new airline launches has trended down sharply since its 2021 peak of roughly 58 startups, moving toward much lower figures in 2024 and 2025 levels not seen since the late 1990s. Meanwhile, airline exits have also declined, with 2025 evidence suggesting a rare balance between entries and exits. Source: IATA Data)

Industry Specialist's Point of View

CEO of the aviation giant Indigo, Pieter Elbers, who is also a former CEO of KLM, told Aviation Week that:

"The aviation industry is maturing out of its post-COVID rebound into the more steady, measured growth phase. Although the new airline projects are still confident in the market opportunity, the burden of cost structures, certification barriers, and supply chain pressures is creating a more fearful entry atmosphere."

A Market at Equilibrium, Not Expansion

Recent entrants highlighted by IATA and CAPA, such as Caribbean low-cost carrier Arajet, underline how new capacity is increasingly state-supported or niche-led rather than organically proliferating. At the same time, the exit of smaller and financially fragile carriers reflects persistent pressures from high leasing costs, engine availability issues, and elevated fuel and financing expenses. With global airline numbers effectively flat year-on-year, the data suggests the industry is entering a phase of structural consolidation rather than expansion. In effect, 2025 marks a slowdown in airline proliferation, signalling a more cautious and capital-intensive era for new entrants.