Alaska’s RavnAir Bankruptcy While Awaiting Government Aid Shows Regional Airlines’ Challenges

Delta Air Lines passenger planes are seen parked due to flight reductions made to slow the spread of COVID-19, at Birmingham-Shuttlesworth International Airport in Birmingham, Ala., on March 25, 2020. Elijah Nouvelage/Reuters

WASHINGTON/CHICAGO—RavnAir Group, the largest regional carrier in Alaska, filed for bankruptcy on Sunday and grounded all of its 72 planes, saying it was clear that government aid would not arrive before it ran out of cash in the midst of an “astonishing” decline in bookings and revenue due to the CCP (Chinese Communist Party) virus, commonly known as the novel coronavirus.

Its Chapter 11 filing underscores the challenges facing other regional carriers that, like larger airlines, are seeking federal aid to help them through the worst downturn the industry has ever faced.