Air Belgium’s bankruptcy sparks urgent calls for airline insolvency protection

The final chapter in Air Belgium’s turbulent journey has been written. Following its official declaration of bankruptcy on 30 April 2025, travel industry stakeholders across Europe are sounding the alarm on the urgent need for better airline insolvency protection. The collapse of the once-ambitious airline has left nearly €8 million in unpaid refund claims, with over €5 million of that burden falling on travel agents and tour operators.

Founded with lofty ambitions to connect Belgium with long-haul destinations, Air Belgium never quite found stable footing. Initially targeting scheduled services to Asia and the Caribbean, the airline frequently shifted strategies—from passenger operations to charter work and eventually cargo and ACMI (Aircraft, Crew, Maintenance, and Insurance) leasing. By September 2023, it announced a complete withdrawal from scheduled passenger flights, aiming to refocus on cargo and leasing. That pivot proved insufficient.

Air Belgium’s downfall didn’t just leave passengers stranded—it exposed significant weaknesses in the European travel ecosystem. According to the European Travel Agents’ and Tour Operators’ Association (ECTAA), the bankruptcy is another painful reminder of the systemic risk borne by travel intermediaries. These small and medium-sized enterprises, which represent 98% of the sector, are legally obligated to provide alternative transport to clients when an airline fails—often without any chance of reimbursement from the defunct carrier.

Frank Oostdam, President of ECTAA, called the situation “unacceptable,” stressing that airlines must be legally required to offer financial guarantees in the event of insolvency. “The Air Belgium bankruptcy is yet another stark reminder that the current system leaves both consumers and travel intermediaries exposed,” he said.

There may be a window for reform. The Council of the European Union is currently reviewing Regulation 261/2004 on air passenger rights. ECTAA is pushing for the inclusion of mandatory airline insolvency protection in this legislation, pointing to models such as Denmark’s air ticket guarantee fund as viable solutions.

For Belgian consumers and industry insiders, the demise of Air Belgium feels particularly personal. It marks the end of an ambitious, home-grown airline that never fully took flight, and adds to a growing list of European carriers that have gone under in recent years.

Aviation24.be has closely followed the ups and downs of Air Belgium—from its hopeful beginnings with Airbus A340s to its more recent pivot toward cargo operations with Airbus A330 freighters. The airline struggled with route profitability, regulatory hurdles, and pandemic-era disruptions, culminating in its slow fade from the passenger market.