AlbaStar suspends flights and prepares insolvency filing

Spanish charter airline AlbaStar suspended commercial flights on 10 November 2026 and said it would apply for voluntary insolvency proceedings. The Palma de Mallorca-based carrier is still in talks with potential investors in an effort to resume operations.

In a letter to business partners seen by Spanish trade publication Preferente, managing director Oriol Hernández said AlbaStar’s debt burden dated back to the pandemic and had been compounded by geopolitical tensions and rising fuel costs. Several potential investors had shown interest, but the airline’s cash position forced it to halt flights before it could reach a deal.

AlbaStar had already undergone a rescue in 2022. According to Aviacionline, Spanish investment firm Sherpa Capital took a majority stake as part of a deal that included a capital increase and a €15 million loan from Spanish development finance institution COFIDES. The shareholders subsequently sought a strategic investor or a buyer for the airline.

Founded in 2009 by Italian and British investors, AlbaStar began flying in July 2010 with a Boeing 737-400. It built a business around holiday and pilgrimage charters, including flights to Lourdes, and had a substantial presence in Italy. It also wet-leased aircraft to other airlines, including two 737-800s to Argentina’s Flybondi for the 2024–25 southern summer. AlbaStar employed about 200 people.

AlbaStar had five Boeing 737-800s, each configured with 189 seats. The fleet was reported parked at the following airports at the time of the suspension.

AlbaStar’s notice gave no details on how many passengers or charter flights were affected, or what arrangements tour operators would make. Hernández said outstanding operational and contractual matters would be handled through the applicable legal procedures.

Sources: preferente.com, Aviacionline, hosteltur.com