Hibernian Airlines is set to disappear permanently after Spanish parent company Air Nostrum decided to dissolve the Irish regional carrier and the holding company linked to its operations.

The move marks another shutdown in a difficult period for smaller airlines facing rising costs, operational challenges and pressure from changing market conditions.

The Irish airline had already stopped operating at the end of 2024, but hopes remained among some industry observers that the brand could return under a different structure.

Those expectations have now ended as Air Nostrum moves forward with the dissolution process involving both Hibernian Airlines and the Strategic Alliance of Regional Airlines (SARA) holding company.

The decision follows years of uncertainty surrounding the carrier’s future and comes as several smaller airlines across Europe and beyond have struggled to remain financially viable.

Air Nostrum Decision Ends Years of Uncertainty for Hibernian Airlines

According to reporting cited by The Street, the aviation sector has seen several smaller carriers shut down during 2026 as companies deal with higher operating expenses and the impact of increased fuel prices linked to geopolitical tensions.

Hibernian Airlines was founded in 2017 at Dublin International Airport (DUB), operating as both a charter airline and an aircraft, crew, maintenance and insurance provider.

The carrier was created to support regional aviation demand and provide services to other operators through an ACMI model, where airlines lease aircraft along with crews and operational support.

The airline’s future became uncertain after Air Nostrum decided to consolidate its operations into the wider SARA structure.

The Spanish parent company later transferred Hibernian’s fleet to its sister airline, reducing the need for separate charter operations based in Ireland.

The process led to discussions about the company’s long-term direction, including plans to cut 53 positions and reduce most remaining business activities.

After nearly two years of discussions, Air Nostrum has reportedly decided that maintaining the separate airline structure no longer made financial sense.

The Future of Air Nostrum and Its Regional Aviation Strategy

Air Nostrum has not publicly confirmed the reports surrounding the dissolution of Hibernian Airlines.

The Spanish operator remains active in the European aviation market and has recently expanded services to domestic destinations, including routes connecting mainland Spain with the Balearic Islands and the Canary Islands.

The company is one of Europe’s largest regional airline operators and has historically worked closely with major aviation groups through regional flight agreements.

The closure of Hibernian reflects a wider industry trend in which smaller carriers are being absorbed, restructured or removed as airlines search for more efficient operating models.

Regional airlines have faced particular pressure because they often operate with limited financial margins while dealing with aircraft costs, labor expenses and fuel price fluctuations.

The dissolution also highlights the challenge of maintaining independent airline brands when their fleets and operations can be integrated into larger affiliated companies.

For Air Nostrum, the move appears to represent a consolidation of resources rather than a withdrawal from regional aviation.

CityJet Survives Restructuring as Smaller Airlines face Pressure

While Hibernian Airlines is heading toward dissolution, another Irish aviation company, CityJet, has taken a different path after a major restructuring process.

CityJet exited restructuring in 2025 after receiving a €40 million rescue package approved by the Irish High Court.

The agreement gave Danish investor Lars Thuesen a 92% ownership stake in the airline.

The deal prevented a potential liquidation but also generated criticism from some observers who described the arrangement as a “hostile takeover,” according to reports from The Currency.

In 2026, CityJet continues operating regional flights for larger airline groups, including SAS, Air France, and Brussels Airlines.

The carrier also maintains short-haul services between Dublin and London, showing that some regional operators are adapting rather than disappearing.

The contrasting situations of CityJet and Hibernian demonstrate the different outcomes available to smaller airlines facing financial pressure.

Some companies survive through restructuring and partnerships, while others are ultimately absorbed or closed.

Airline Shutdowns Continue Across Global Aviation in 2026

The dissolution of Hibernian Airlines follows several other airline shutdowns reported during 2026.

Spirit Airlines became one of the largest aviation failures of the year after ending all remaining flights on May 2, 2026.

The U.S. low-cost carrier had previously entered Chapter 11 bankruptcy protection twice, but rising fuel prices and financial difficulties pushed the airline toward a complete shutdown.

Mexican holiday carrier Magnicharters also suspended operations, canceling flights and leaving passengers affected during the process.

Houston-based Starflite Aviation lost its FAA operating certificate in March 2026 after regulators alleged that company owners falsified pilot training records.

Slovenian charter operator AlpAvia ended operations in March 2026 following financial difficulties.

Swedish charter airline H-Bird was declared bankrupt after losing its operating license at the end of 2025.

The growing list of closures shows how smaller carriers remain exposed to sudden changes in costs, regulations and market demand.

For regional aviation, 2026 has become a year defined by consolidation, restructuring and the disappearance of several established names.