Airline Files for Bankruptcy, Grounds All Flights: Orlando Airport Braces for Disney Guest Fallout

An airline filing for bankruptcy might affect your upcoming Walt Disney World vacation.

A person stands in front of a flight information board, looking up at the screen. To the left, an image of Mickey Mouse at a Disney theme park with a castle in the background adds a touch of magic to the scene. — Credit: Inside The Magic

Disney World To See Fallout of Airline Bankruptcy

While several airlines benefit from the ongoing surge in travel demand post-pandemic, others are grappling with significant challenges such as soaring jet fuel costs, aircraft supply chain disruptions, and a limited customer base, particularly for regional carriers.

In 2024, several airlines, including Air Malta, Armenia’s FlyArna, Canada’s Lynx Air, and Antigua and Barbuda’s LIAT, either sought bankruptcy protection or ceased operations entirely. Air Vanuatu abruptly canceled all its flights in the South Pacific in May, leaving numerous tourists and locals stranded.

Canada Jetlines, headquartered in Mississauga, Ontario, endured a lengthy fundraising process and government approval before launching its first flight in September 2022.

Despite its initial ambitions to cater to Canadian travelers heading to the U.S. and the Caribbean, the airline needed help maintaining operations. On August 15, Canada Jetlines announced it was halting all flights due to an inability to secure sufficient capital, having previously explored various financial strategies, including debt and equity financing and strategic transactions.

The airline’s future now hinges on a potential last-minute investment or drastic changes, with the company seeking creditor protection in hopes of restarting operations.

“The company pursued all available financing alternatives, including strategic transactions and equity and debt financings,” said spokesperson Erica Dymond in a statement. “Unfortunately, despite these efforts, the company has been unable to obtain the financing required to continue operations at this time.”

A woman dressed as Cinderella at a Disney theme park with a castle in the background, viewed from a sunlit patio with chairs, as a plane flies overhead in a clear sky. — Credit: Inside The Magic

The airline, needing more funds for direct refunds, advised passengers to contact their credit card companies with canceled flights. Among the affected routes were connections between Toronto and popular destinations such as Jamaica’s Montego Bay, Mexico’s Cancun, and Florida’s Orlando.

Similarly, Lynx Air, another low-cost Canadian carrier, filed for bankruptcy protection in February 2024, citing high operating and fuel costs, alongside stiff competition from industry giants Air Canada and WestJet Airlines.

Canada’s 38.9 million residents frequently rely on U.S.-based carriers like United Airlines and Delta for flights to destinations such as Florida.

“Whenever a new player enters the market, one thing is certain: they’re going to be losing money for at least the first eight to ten months, possibly even longer,” said Jacques Roy, a professor of transport management at HEC Montreal, in an interview with Global News. “A strong financial foundation is crucial.”

The recent turmoil in the airline industry, marked by several carriers’ shutdowns and financial struggles, could have significant implications for travelers planning visits to Walt Disney World Resort. With airlines like Canada Jetlines and Lynx Air halting operations, many guests, particularly those from Canada, may need help securing flights to Orlando, a key gateway to the popular resort.

Main Street, U.S.A. at Magic Kingdom Park at Walt Disney World Resort in Florida, edited with a vintage filter. — Credit: Inside the Magic

Guests planning trips to Walt Disney World should proactively review their travel arrangements, especially if they were booked on one of the affected airlines. Those with canceled flights are advised to contact their credit card companies for potential refunds, as the airlines themselves may not be able to issue reimbursements due to their financial situations.

Additionally, travelers might need to explore alternative carriers, such as United Airlines or Delta, which continue to operate flights to Orlando.

To mitigate potential disruptions, guests should consider booking flights as early as possible and monitor travel advisories or airline updates. Flexibility with travel dates and times could also provide more options for securing alternative flights. Rescheduling or adjusting vacation plans may be necessary for those impacted by the sudden changes to ensure a smooth and enjoyable visit to Walt Disney World Resort.

Despite the recent airline disruptions affecting some Walt Disney World guests, proper planning can help ensure that upcoming vacations remain on track. By securing alternative flights early, monitoring travel updates, and being flexible with travel dates, guests can navigate the changes without significantly impacting their plans.

While the airline situation may cause initial concern, those who proactively adjust their travel arrangements should still be able to enjoy their Disney vacation without significant disruptions.