UK airline goes into liquidation after ‘rise in fuel prices’

The ongoing conflict in the Middle East between the US, Israel, and Iran has resulted in a recent spike in fuel prices.

Many airlines have felt the effects, and now Hertfordshire-based Ascend Airways has reportedly entered liquidation.

The UK company offered aircraft for other airline carriers, such as Tui Airways, Oman Air and Air Sierra Leone and operated at Southend Airport and Gatwick Airport.

UK airline Ascend Airways goes into liquidation

Ascend Airways is set to return its fleet of Boeing 737 Max 8s to lessors and surrender its air operator’s certificate (AOC), Flight Global reports.

The company was originally founded as Synergy Aviation as a small charter and management firm.

It was acquired by Avia Solutions Group in 2023 to serve as its primary UK-based operator.

It obtained its UK AOC two years ago and has been operating an all-737 Max 8 fleet.

Its inaugural commercial flight took place in April 2024, operating from London Southend Airport.

The ongoing Middle East conflict and the rise in fuel prices have resulted in a “challenging outlook” for the summer season, the carrier told Flight Global.

It said: “These external pressures have compounded the structural challenges of operating a UK AOC within the European [wet-lease] 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 airline describes its surrender of the AOC as “strategic” but said that it has met contractual obligations through the winter, or exited agreements in an “orderly” manner, and it is supporting employees ahead of its AOC return.

“By working closely with stakeholders, a managed wind-down of operations has been achieved to minimise disruption to customers, consumers and aircraft lessors,” it adds.

However, reports also suggest that the company has gone into liquidation, according to The Sun.

An insider said: “It’s gone bust today (April 28), we got the news this afternoon.

“We’ve all been given the letters that it’s all going into liquidation.”

They added: “It’s to do with the economy, we couldn’t get contracts, the UK is a lot more expensive than Europe.

“The fuel situation had a massive effect on it as well.”

Ascend Airways and Avia Solutions Group have been contacted for comment by Newsquest.

Several major airlines have already responded to this rise in fuel prices due to the conflict in the Middle East.

This has been done by increasing fares, adding or increasing fuel surcharges, and cutting flights.

UK airline Skybus announced previously that it had ceased all flights between Cornwall and London due to “the huge rise in the global cost of fuel” and “a significant drop in new passenger bookings”.

Ryanair CEO Michael O’Leary has also warned Brits to book their summer holidays “as quickly as you can” to avoid rising costs.

Airlines that have entered liquidation or administration in 2026 (so far)

Several airlines entered liquidation in 2025, according to the UK Civil Aviation Authority , including:

• Blue Islands Limited (UK) – November
• Air Kilroe Limited t/a Eastern Airways (UK) – November
• Play Airlines (Iceland) – September

Three airlines have entered administration or liquidation in 2026 (so far), resulting in the cancellation of more than 4,000 flights:

Airlines are not the only travel businesses affected, with four UK travel companies having also ceased trading in 2026, resulting in the cancellation of flights and holiday packages to destinations around the world.

The four UK travel companies that have closed down in 2026 (so far) are:

• Regen Central Ltd
• Gold Crest Holidays
• Asiara UK Ltd
• Simply Florida Travel Ltd

All four have ceased trading, according to Companies House, and have lost their Air Travel Organiser’s Licence (ATOL).

Have you been impacted by any flight cancellations or airfare price hikes caused by increased fuel prices? Let us know in the comments below.