• Home
  • Reviews
    • Flight Reviews
    • Hotel Reviews
    • Lounge Reviews
    • Trip Reports
  • About
    • Press
  • Contact
  • Privacy
  • Award Expert
Live and Let's Fly
  • Home
  • Reviews
    • Flight Reviews
    • Hotel Reviews
    • Lounge Reviews
    • Trip Reports
  • About
    • Press
  • Contact
  • Privacy
  • Award Expert
Home » Analysis » As Another Airline Collapses, Which One Will Fail Next?
AnalysisWOW

As Another Airline Collapses, Which One Will Fail Next?

Matthew Klint Posted onOctober 18, 2018November 14, 2023 4 Comments

a white airplane in the sky

Cobalt, a low-cost carrier based in Cyprus, is the latest airline in Europe to fail. But it will not be the last. Who is next?

Visit Cobalt’s website and you’ll be met with this lovely page:

a white text with black text

Cobalt regrets to announce that it will be cancelling all Flights as of 23:50pm on October 17, 2018 due to indefinite suspension of Cobalt’s operations. As a result, future flights or services provided by Cobalt will be cancelled and will no longer operate.

Bottom line: the company lost money last year, lost money this year, and its main Chinese investor (Avic Joy Air) decided enough was enough.

Apparently the writing was on the wall. Cobalt had skipped its payment on two leased planes earlier this month. Civil aviation authorities in Cyprus also exercised close oversight, making sure that Cobalt did not skip paying for salaries or properly maintaining its aircraft.

While not a big airline, Cobalt served 23 destinations within Europe using a fleet of two Airbus A319s and four Airbus A320. It had recently introduced business class onboard.

a woman holding a tray of food

Who Is Next?

One Mile At A Time reports that Air Belgium is also on the brink of liquidation. Its whole business plan frankly never made sense. Instead of operating premium service out of a secondary airport in Brussels, the carrier should focus on leasing its planes to those in need. Currently the carrier is only leasing one of its aircraft out, an A340 that British Airways is using to operate between Abu Dhabi and London.

But frankly I am more worried about WOW Air. There is no question that WOW Air expanded its service to the United States too aggressively. It already cut service to San Francisco and will discontinue service to St. Louis, Cincinnati, and Cleveland. In Europe, it has recently abandoned Stockholm and Edinburgh.

WOW Air is also laying off employees, struggling with higher oil prices, and finds itself in a highly-competitive market for budget travel to/from Europe.

The carrier is now focusing on Asia instead. It has plans to add service to 15 new destinations in Europe by the end of the next year. Even so, I’m worried about the long-term viability of WOW in this market.

CONCLUSION

We face an airline market that (arguably) has too many participants. While all the recent shutdowns may simply be natural market corrections, the results are not pretty. Not only are jobs lost and holiday ruined, but fares will go up to counter the lower supply.

Leave a comment if you were booked on Cobalt. How did the airline handle it?

Get Daily Updates

Join our mailing list for a daily summary of posts! We never sell your info.

You have Successfully Subscribed!

Previous Article Restaurant Dumps Priority Pass At LAX
Next Article Three Twists In The Ryanair “Staged Photo” Story

About Author

Matthew Klint

Matthew is an avid traveler who calls Los Angeles home. Each year he travels more than 200,000 miles by air and has visited more than 135 countries. Working both in the aviation industry and as a travel consultant, Matthew has been featured in major media outlets around the world and uses his Live and Let's Fly blog to share the latest news in the airline industry, commentary on frequent flyer programs, and detailed reports of his worldwide travel.

Related Posts

  • WOW AIr CEO Regrets

    WOW Air CEO Blames Collapse On One Strategic Blunder

    March 29, 2019
  • a white airplane in the sky

    LOT Polish Using Air Belgium A340 On Warsaw – New York JFK Route

    February 28, 2019
  • WOW Air Deep Cuts

    WOW Air Cuts More Flights, Offers 50% Off Remaining Ones

    December 14, 2018

4 Comments

  1. NB Reply
    October 18, 2018 at 9:49 am

    Whilst in the long run, profits and good business plans make for success, airlines actually fail because they run out of cash – which is usually brought on by funding sources drying up. Yes, you need to be worried about WOW, but you also need to look at Norwegian. It is still expanding rapidly and devouring cash. If confidence remains that either a) it can own its space of the low cost market or b) it will be taken over by BA or LH, then it will continue to be backed. But, if confidence waivers, then it will be a different story. BA’s and LH’s interest will fade very rapidly if they sense that there’s no more cash.

  2. Marissa Reply
    October 18, 2018 at 12:23 pm

    I’m actually Surprised about Cobalt because it had a reasonable business model. Would not surprise me if Wow or some of the other TA low-cost carriers go under. These are unsustainable business models. Does no one remember People Express? it’s a classic case study.

  3. Andy K Reply
    October 18, 2018 at 12:44 pm

    So regarding refunds, most travelers are SOL unless a credit card issues a refund?

  4. No Reply
    October 18, 2018 at 10:06 pm

    Please let it be highly subsidized Alitalia.

Leave a Reply

Cancel reply

Search

Hot Deals for May

Note: Please see my Advertiser Disclosure

Capital One Venture X Business Card
Earn 150,000 Miles Sign Up Bonus
Chase Sapphire Preferred® Card
Earn 100,000 Points
Capital One Venture X Rewards Credit Card
Capital One Venture X Rewards Credit Card
Earn 75,000 Miles!
Capital One Venture Rewards Credit Card
Capital One Venture Rewards Credit Card
Earn 75,000 Miles
Chase Ink Business Unlimited® Credit Card
Earn $750 Cash Back
The Business Platinum Card® from American Express
The Business Platinum Card® from American Express
Earn 120,000 Membership Reward® Points

Recent Posts

  • Dog Diversion Delta
    Delta Flight Diverts To Care For Sick Dog. Justified? May 28, 2025
  • a inside of a plane with lights
    Review: Korean Air 747-8 First Class May 27, 2025
  • a screen on a plane
    My Highly Productive Daytime Flight To London On JetBlue May 27, 2025
  • Southwest Airlines Checked Bags
    Suicide: Southwest Airlines Eliminates Free Checked Baggage May 27, 2025

Categories

Popular Posts

  • United Airlines Polaris Lounge Chicago Review
    Review: United Polaris Lounge Chicago (ORD) May 1, 2025
  • United Airlines Refresh Polaris Lounge Chicago
    First Look: United Airlines Reopens Renovated Polaris Lounge In Chicago (ORD) April 29, 2025
  • a hand holding a blue card
    Chase Sapphire Preferred 100K Bonus Offer Ending Soon May 2, 2025
  • Aegean Airlines Feast
    A Feast Fit For A King On Aegean Airlines May 23, 2025

Archives

May 2025
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031  
« Apr    

As seen on:

facebook twitter instagram rss
Privacy Policy © Live and Let's Fly All Rights Reserved. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Live and Let's Fly with appropriate and specific directions to the original content.