Flybondi Files for Creditor Protection as Operations Collapse

Flybondi has filed for concurso preventivo, Argentina’s court-supervised creditor restructuring process, as the low-cost carrier attempts to reorganize its debts following a severe deterioration in its financial position and operations.

The filing was submitted on October 2 by operating company FB Líneas Aéreas and assigned to National Commercial Court No. 24 in Buenos Aires. The process is intended to allow Flybondi to negotiate with creditors while seeking to avoid bankruptcy and preserve the business.

Flybondi faces obligations to aircraft lessors, maintenance providers, fuel suppliers, EANA and Intercargo, alongside claims from employees and passengers seeking refunds. Publicly identified debts and claims exceed ARS4 billion and could approach ARS4.6 billion including interest and costs from certain seizures, although the airline’s total liabilities are understood to be higher. Two aircraft outside Argentina are also reported to have accumulated approximately $5.5 million in maintenance-related obligations.

The financial crisis has sharply reduced Flybondi’s fleet and network. The airline has three aircraft in Argentina without commercial activity, while another 10 have been returned to their lessors or are undergoing the redelivery process.

The operational contraction has effectively erased Flybondi’s former position in Argentina’s domestic market. ANAC data cited in the reports show the airline carried 254,533 domestic passengers in August 2025, representing a 17% market share. In August 2026, traffic had fallen to just 1,865 passengers and a 0.1% share.

The restructuring follows a shareholder dispute involving COC Global, which entered Flybondi in 2025 after providing more than $70 million in funding, and longtime shareholder Cartesian Capital Group. The dispute intensified after Argentina’s tax authority ordered the seizure of Flybondi bank accounts, further restricting the airline’s ability to meet its obligations.

The court process will now determine the framework under which Flybondi can negotiate with creditors and whether the airline can restructure its liabilities sufficiently to restore operations.