Egyptian low-cost and charter airline, FlyEgypt, based in Cairo, has made the tough decision to halt its operations and cancel all upcoming flights with immediate effect. Facing financial challenges, the airline, which started in 2014 and once boasted a fleet of up to nine aircraft, has encountered difficulties leading to the accumulation of significant debts. The troubled carrier announced its intentions to file for bankruptcy on October 21, 2024, and called off all future services from Cairo International Airport and Sharm El Sheikh International Airport.

However, the Egyptian Civil Aviation Authority (ECAA) intervened, preventing FlyEgypt from liquidating its assets and ceasing operations abruptly. The ECAA insisted that the airline settle its outstanding debts before proceeding with bankruptcy procedures. FlyEgypt's main creditors are reportedly Italian and German tour operators, alongside local partners and entities like Egypt's National Air Navigation Services Company and certain airports in the country.

With the ECAA demanding a comprehensive debt repayment plan from the airline, a legal standoff has ensued between the two parties, with legal representatives now involved in navigating the complex situation. FlyEgypt was left with just one Boeing 737-800, leased from AerCap and registered as SU-TMN, before its operations came to a halt. This aircraft, which joined the fleet in September 2021, completed its final flight from Jeddah to Cairo on September 20, 2024, and has since been under maintenance at Cairo International Airport.

Established in 2015, FlyEgypt operated flights between Cairo and Jeddah, offering both low-cost scheduled services and charter flights to Egyptian Red Sea resorts. The airline connected various countries across Europe, the Middle East, and Central Asia through 21 routes to 19 destinations. While the airline’s closure has created a void in the market, other airlines in Egypt are expected to step in and fill the gap left by FlyEgypt.

As FlyEgypt faces financial challenges and regulatory hurdles, its future remains uncertain. The legal deadlock with the ECAA has left the airline unable to operate, highlighting the complex issues at play as it strives to find a resolution amidst its financial troubles.