Silver Airways, a regional airline operating across Florida, the Caribbean, and the US Virgin Islands, has filed for Chapter 11 bankruptcy protection, citing over $500 million in debt. The airline, which partners with major carriers like United and JetBlue for regional routes, reassured customers that flights will continue as scheduled and tickets remain valid during the restructuring process.

Silver Airways plans to emerge from bankruptcy by late 2025, using the time to secure additional capital and strengthen its financial position.

The filing comes just weeks after Spirit Airlines, the nation’s largest budget carrier, declared bankruptcy due to mounting losses and debt. Both carriers exemplify the struggles faced by ultra-low-cost airlines, which have been hit hard by shifting travel preferences since the pandemic, with many customers opting for more comfortable travel experiences despite higher prices.

Silver’s financial troubles have been evident for years, with significant debts owed to the IRS and major airport authorities, and the loss of key partnerships like its codeshare with American Airlines.

Industry analysts see these bankruptcies as signs of deeper issues in the budget airline business model, raising questions about the sustainability of ultra-low-cost carriers in an evolving travel market.