A British airline has gone into liquidation after being hit by rising fuel costs, reports say.
Continuing unrest in the Middle East involving the United States, Israel, and Iran has caused aviation fuel prices to climb sharply.
The aviation industry has suffered the consequences, and now Hertfordshire-based Ascend Airways has reportedly entered liquidation proceedings.
The British company supplied aircraft to other airline clients, such as Tui Airways, Oman Air and Air Sierra Leone, and ran operations from Southend Airport and Gatwick Airport.
Ascend Airways enters liquidation
Ascend Airways intends to hand back its Boeing 737 Max 8 planes to leasing firms and give up its air operator’s certificate (AOC), according to Flight Global.
The company initially launched under the name Synergy Aviation as a boutique charter and management enterprise.
It was acquired by Avia Solutions Group in 2023 to act as its main British subsidiary.
The UK AOC was obtained two years previously, and the firm operated a fleet consisting solely of 737 Max 8 aircraft.
Its inaugural commercial flight took off in April 2024 from London Southend Airport.
The continuing Middle East conflict and climbing fuel expenses have produced a challenging forecast for the summer period, the airline told Flight Global.
It stated that external pressures have compounded the structural challenges of managing a UK AOC within the European wet-lease sector. The absence of reciprocal wet-leasing arrangements for British carriers, combined with higher operating expenses, has made the UK certificate a more costly and less adaptable option compared to EU AOCs.
The airline described its AOC surrender as a strategic move but confirmed it honoured contractual obligations throughout the winter season, or ended agreements in an orderly manner, and is helping employees before returning its AOC.
Through close work with stakeholders, a controlled scaling back of operations was achieved to minimise disruption for customers, passengers and aircraft lessors, the statement continued.
However, sources also indicate the company has gone into liquidation, per The Sun.
A source said the company collapsed on April 28, with confirmation received that afternoon. All staff were informed that everything is moving to liquidation. The situation stems from the economic environment, with contracts impossible to secure, and Britain being significantly more expensive than Europe. The fuel issue also had a major effect.
Newsquest has contacted Ascend Airways and Avia Solutions Group for comment.
Numerous major airlines have already tackled these fuel price rises caused by the Middle East conflict.
Their actions have included increasing ticket prices, adding or growing fuel surcharges, and cutting back flight programmes.
UK airline Skybus previously disclosed it had halted all services between Cornwall and London, citing the dramatic rise in global fuel costs and a noticeable drop in new passenger bookings.
Ryanair chief executive Michael O’Leary has also warned British holidaymakers to book their summer escapes as soon as possible to avoid mounting costs.
Several carriers entered liquidation in 2025, the UK Civil Aviation Authority records show, including Blue Islands Limited (UK) in November, Air Kilroe Limited trading as Eastern Airways (UK) in November, and Play Airlines (Iceland) in September.
Three airlines have entered administration or liquidation in 2026 so far, causing more than 4,000 flight cancellations: EcoJet Airlines, Royal Air Philippines, and Dove Airlines.
The airline industry is not the only sector affected, with four British travel firms also having stopped trading in 2026, leading to cancellations of flights and holiday packages to destinations worldwide.
The four British travel companies that have shut down in 2026 so far are Regen Central Ltd, Gold Crest Holidays, Asiara UK Ltd, and Simply Florida Travel Ltd.
All four have ceased operations, according to Companies House, and have had their Air Travel Organiser’s Licence (ATOL) withdrawn.