Another airline has filed for bankruptcy protection as financial pressure continues to hit carriers across the world.

Chinese regional airline Joy Air has entered the early stages of restructuring after grounding all flights in late April, according to local reports.

The carrier cancelled operations ahead of the busy May travel season and has repeatedly missed deadlines to restart services.

Joy Air, founded in 2008 in the city of Xi’an, operated domestic routes across China using a fleet that included Boeing 737-800 aircraft and Xi’An MA60 turboprop planes.

The airline reportedly faced debts of roughly $735 million USD, along with labour disputes and unpaid wages involving pilots and cabin crew.

The collapse comes days after Mexican budget airline Magnicharters filed for bankruptcy protection in Mexico City after suspending flights.

Several smaller airlines have shut down or sought bankruptcy protection this year as soaring jet fuel prices and weaker demand continue to strain the aviation industry.

Among the airlines affected in 2026 are Spirit Airlines, which ended operations in May, Slovenian charter carrier AlpAvia and Sweden’s H-Bird.