Late in the evening on June 10, Silver Airways announced on Instagram that it was ceasing operations as of June 11.
The Silver Airways shutdown has left travelers stranded without flights during the busy summer travel season, raising questions about rebooking and future travel.
If you’ve booked flights through Silver Airways, here’s what you need to know about the regional airline’s collapse.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.
Profit and prosper with the best of expert advice – straight to your e-mail.
What caused the Silver Airways shutdown?
On December 30, 2024, Silver Airways posted an open letter to customers, explaining the company voluntarily filed for Chapter 11 bankruptcy.
“This decision will allow us to secure additional capital and undertake a financial restructuring that will strengthen our position as a competitive airline,” the letter stated. The airline indicated the process would be completed by the first quarter of 2025, and noted that all tickets remained valid.
According to the Instagram post from June 10, the airway indicated issues with the financial restructuring that would have allowed the business to continue operating.
“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 continue Silver’s flight operations in Florida, the Bahamas and the Caribbean,” the post read.
The post encouraged travelers not to go to the airport. “All credit card purchases should be refunded through your credit card company or your travel agency,” it said.
What should Silver Airways travelers do?
If you booked flights through Silver Airways, contact your credit card company or your travel agency to request a refund. It can take several weeks to process and receive refunds, so start that process right away.
While Silver Airways offered flights to destinations in Florida, the Bahamas and the Caribbean, several other airlines fly into the same areas. American Airlines flies to most of the destinations that Silver Airways covered, and has flights leaving from Miami International Airport. JetBlue, Cape Air and Frontier Airlines fly most of the same routes that Silver Airways flew from San Juan.
If you need to book a new flight, try to buy your flight as early as possible. The price of airline tickets has increased by 25% over the last year alone, and airfare prices can increase steeply if you wait until the last minute to buy your tickets.
How can you protect yourself from flight cancelations?
The Florida flight cancelations resulting from the Silver Airways shutdown have left travelers stranded, and many travelers will ultimately need to pay more to rebook their flights. If you’re planning on traveling, you can take several steps to protect yourself from flight cancelations:
- Know your rights. In 2024, the U.S. Department of Transportation issued a rule regarding refunds after canceled flights. The rule entitles you to an automatic refund if your airline cancels your flight and does not rebook you. You’re also entitled to a refund if the airline offers a rebooking but you don’t accept it.
- Strategically book your flights. When possible, try to fly early in the morning so that your flight isn’t impacted by delays that occurred earlier in the day. Book direct flights if you can, since you won’t have to worry about a flight delay causing you to miss connecting flights.
- Give yourself extra time. If you’re flying into a destination for an event, like a cruise, schedule your flight so you’ll arrive an extra day early. If your flight is canceled, you’ll have time to rebook onto another one without missing your cruise.
- Read the terms carefully. Before you buy your flight, fully read your airline’s terms and conditions policies. Be aware of any refundable deposits, and try to minimize or avoid them. Review the airline’s cancellation policy, too.
- Buy travel insurance. Travel insurance can help you recoup some or all of your nonrefundable costs if your flight is canceled. When you buy travel insurance, thoroughly read the policy so you understand just how it works.
Bottom line
You may not be able to fully anticipate an airline’s collapse, but it’s a good idea to monitor the news for information about any airlines you plan to fly with.
Silver Airways shared news about their bankruptcy a few months before ceasing operations; if a similar instance occurs with your airline, you may want to rebook with another airline just in case.
