Flybondi on brink of insolvency as debts and lawsuits stall operations

Argentina’s first low‑cost carrier Flybondi is confronting an acute financial and operational crisis. A hotel in Buenos Aires has filed a bankruptcy petition seeking more than $660 million in unpaid accommodation fees, while transport firm Tienda León has sued the airline for over $122 million in logistics services. Creditors claim the airline owes roughly $25 million to aircraft lessors and $5.5 million to maintenance workshops in Mexico, leading to the grounding of most of its fleet; only two Boeing 737‑800s remain operational.

The airline’s cash position is reportedly near empty, and it needs at least $30 million to restore basic operations. Cancellations have surged, with the carrier halting flights for consecutive days and transporting only about 70,000 passengers in May, far below previous volumes. About 300 employees, including senior executives, have left the company, and no new CEO has been appointed. The situation is under review by the Argentine transport regulator and commercial courts, raising concerns about the future of the country’s low‑cost aviation market.