Budget airline cancels all flights, told travelers 'not to go to airport'
"Please do not go to the airport," the low-cost airline said in a statement to travelers.
Six months after Silver Airways first announced to travelers that it was filing for Chapter 11 bankruptcy, the budget vacation airline is permanently shutting down operations.
Silver has amassed over $500 million in unpaid debts and, after a bankruptcy auction in the Southern District of Florida ending in early June failed to produce a single bid, the airline will now officially be sold to Argentum Acquisition Co.
The hedge fund company has an established history taking up bankrupt airlines and made a stalking horse bid of $5.77 million — an amount that Judge Peter D. Russin hoped would be topped at the auction given that it will barely make a debt in recouping what is owed to creditors.
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Airline to travelers: 'Please do not go to the airport'
After formally requesting that Russin approve the transfer to Argentum, Silver suddenly shut down operations and told passengers with booked tickets to go home on June 11.
"In an attempt to restructure in bankruptcy, Silver entered into a transaction to sell its assets to another airline holding company who unfortunately has determined to not determine Silver's flight operations in Florida, the Bahamas and the Caribbean," the airline said in a June 11 statement posted on Instagram.
The airline had been running flights to cities like Tampa, Fort Lauderdale and Tallahassee as well as Caribbean destinations like the Bahamas, St. Maarten and St. Kitts into May 2025.
Related: Troubled airline gets no bids at bankruptcy auction
Those who already had booked tickets to one of these destinations were advised to not leave for the airport and contact one's payment source for a refund (presumably, trying to get one through Silver will be met with silence.)
"Please do not go to the airport," the airline said further "All credit card purchases should be refunded through your credit card company or your travel agency." Shutterstock
A flight with Silver booked? Here is what you can do
FlightRadar data shows that at least a half-dozen Silver flights, such as Flight 128 between Puerto Rico's San Juan and St. Kitts and Flight 114 between San Juan and Saint Thomas, were canceled on June 11. Multiple online travel forums immediately saw large numbers of travelers looking for information on what the bankruptcy would mean for them and how to reschedule booked travel with another airline.
More on travel and bankruptcy:
- Airline that filed for bankruptcy selling off parts
- Home Depot CEO sounds the alarm on a growing problem
- Famous restaurant files for Chapter 11 bankruptcy
A refund with one's credit card or other payment source is passengers' best bid for getting any money back given that customers with booked tickets are considered unsecured creditors that are low on the repayment list amid larger debts the airline owes to airports, aircraft lenders and other large companies — in the spring, Orlando and the overseas British territory of Anguilla revoked Silver's right to fly into their airports over accumulating unpaid airport fees.
The City of Tallahassee in north-central Florida has also filed a lawsuit against Silver on behalf of Tallahassee International Airport (TLH) over more than $100,000 in unpaid debts. Silver closed the Instagram post in which it announced that it was ending operations to commenters.
"My thoughts? People are still gonna show up to the airport demanding to speak to someone about a refund," one traveler wrote in the /Flying forum on Reddit.
Related: Veteran fund manager issues dire S&P 500 warning for 2025
