Another Low-Cost Airline Suddenly Shuts Down for Good ...Saudi Arabia

Passengers and employees were dealt a harsh blow the day before Thanksgiving when they learned that New Pacific Airlines would be abruptly shutting down—effective immediately.

On Nov. 26, New Pacific Airlines CEO Thomas Hsieh sent an email to employees announcing the closure, according to View From the Wing.

“Dear New Pacific Team, It is with a heavy heart that I’m announcing that we will be ceasing operations today,” the email read. “Unfortunately, we are unable to continue to fund the losses in our business… For those of you on the road, we will work expeditiously to get you home.” Hsieh added that all W-2 employees would continue to be paid through Nov. 27.

There is still no clear word on whether staff working abroad were temporarily stranded, though the company appears to be arranging transportation home for crew members still in the field.

The shutdown was jarring to those following New Pacific news. Just weeks earlier, the budget carrier announced a partnership with Beond Airlines, signaling a luxury-style expansion to U.S. markets.

The original vision from 2022 had been an international service model with flights to Asia through Ted Stevens Anchorage International Airport—but that strategy was constrained when Russian airspace became a no-fly zone, making the routes financially and operationally unworkable.

After that, the airline had attempted to pivot to domestic U.S. routes, and later to a sports-and-business charter-service model under a New Pacific/Ravn Alaska umbrella. But apparently those pivots weren’t enough to stabilize it. As of today, the airline’s website is still live and even accepting charter quote requests—a reminder of how abruptly operations came to a halt.

A Year of Closings

New Pacific’s shutdown is the latest in a difficult year for independent low-cost airlines. According to The Street, several other budget carriers have shuttered operations in 2025, some including:

Despite air travel demand rising post-pandemic, major carriers have continued to consolidate market share, leaving smaller operators struggling with slim margins, volatile fuel costs and limited access to profitable routes.

“Despite its global importance, regional aviation has not experienced the same dynamic post-pandemic recovery as other parts of the aviation industry," Management consulting firm McKinsey and Company recently summarized in a new report. "Pilot shortages, aging fleets and limited manufacturer investment may have all played a role in these results."

One exception has been Breeze Airways, launched by the former JetBlue founder, David Neeleman, which has quietly expanded into a niche of its own by connecting underserved city pairs. Breeze even announced new international nonstop routes starting in 2026—including service to Jamaica, Mexico and the Dominican Republic—and has been focusing heavily on underserved regional airports. Passengers can expect more “creative” nonstop service to leisure destinations—up to 150 cities by 2030—according to its CEO.

“We’ve grown thoughtfully,” Neeleman said at a CAPA Airline Leader Summit in Grand Cayman in April. “We’re not trying to do too much too fast, and that’s helped us avoid some of the major disruptions others have faced.”

Related: Low-Cost Carrier Breeze Airways Launching FIrst Mexico & Caribbean Routes—Some As Low as $99

What This Means for Passengers Hoping For Deals

For travelers, the trend is still a concerning one—but not because airfares are universally rising. Though prices are up a bit year over year (3.2%) as of September, ticket prices have actually fallen a bit (6.1%) over the past 10 years, thanks to increased capacity and softer demand (though these numbers don't account for increased ancillary charges, like checked bag fees and priority boarding add-ons.)

The issue is more local: when low-cost carriers exit certain routes, the fares on those routes often creep back up because the competitive pressure disappears. Fewer budget airlines also mean fewer flash sales and fewer ultra-cheap fares that keep bigger carriers in check.

In other words, even if you never flew New Pacific, the loss of another low-cost competitor can make affordable flights a little harder to come by—especially in smaller or underserved markets where these airlines once helped keep prices down.

Related: Budget Airline Pulls Loyalty Program After Travelers Take Advantage of Deals

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