Travel & Lifestyle

Florida-based Silver Airways says it will continue operations after filing for bankruptcy

Silver Airways, a regional airline serving Florida and the Caribbean, is continuing to operate flights after filing for Chapter 11 bankruptcy reorganization on Monday.

Silver said in a statement that the Hollywood, Florida-based airline plans to go through bankruptcy to obtain new capital and restructure its debt. It aims to emerge from bankruptcy in the first quarter of 2025 as a stronger, more competitive airline.

Silver said all existing reservations, including through partners JetBlue and United, “remain valid” and that all customers “will not have their reservations or service disrupted.”

Several U.S. airlines are still struggling after the pandemic. Despite record numbers of returning travelers, the cost of many items, from planes to labor, has increased dramatically during the recovery. Spirit Airlines, the largest U.S. ultra-low-cost carrier, filed for bankruptcy protection in November amid rising bills and weak revenue.

Silver faces similar cost challenges. In bankruptcy court filings, the airline disclosed many of its outstanding debts. The company owes aircraft lessor Azorra nearly $4.5 million for its fleet of ATR turboprops and owes the IRS $2.1 million in unpaid taxes or fees. Silver also listed unpaid bills at several busy airports, including Fort Lauderdale-Hollywood International Airport (FLL), Orlando International Airport (MCO) and San Juan Luis Muñoz Marin International Airport (SJU) of operators.

The airline has also struggled to expand in recent years. Attempts to increase flights outside Florida and the Caribbean have failed. Flight schedule data from aviation analytics firm Cirium Diio shows that Silver withdrew from its last two U.S. destinations outside Florida — Savannah/Hilton Head International Airport (SAV) in Georgia and South Carolina — in March. Greenville-Spartanburg International Airport (GSP).

daily newsletter

Reward your inbox with TPG daily e-newsletters

Join over 700,000 readers and get breaking news, in-depth guides and exclusive offers from TPG experts

In March, American Airlines ended its loyalty partnership with Silver.

Cirium schedules show Silver currently flies to 22 destinations in Florida and the Caribbean, primarily from bases in Fort Lauderdale and San Juan. The company operates a fleet of eight ATR 42 and six ATR 72 turboprop aircraft.

Silver subsidiary Seaborne Airlines also operates Twin Otter seaplanes between St. Thomas and St. Croix in the Caribbean.

Related reading:

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
×

Adblock Detected

*We Appreciate Your Visit!*

To enjoy all the features and content on our website, please consider disabling your ad blocker. Our site relies on ads to provide you with quality content and a seamless experience. Thank you for your understanding!