European Cargo Limited has collapsed into administration, leaving 178 staff without jobs after the Bournemouth Airport-based freight airline ceased operations.
The company appointed Stuart Morris, Robert Fishman and David Soden from Teneo Financial Advisory Limited as joint administrators on Wednesday.
A Teneo spokesman said: "The appointment follows a period of significant financial pressure on the business, driven by reduced flying activity and working capital and fuel cost pressures.
"The Company has ceased trading and, regrettably, redundancies are being made."
Administrators said they were prioritising contact with affected employees while also engaging with customers, suppliers and creditors following the collapse.
European Cargo had established itself as a significant operator in the region's aviation and logistics sector after launching operations during the Covid pandemic in 2020.
The airline was created after its parent company responded to an urgent Government request to transport personal protective equipment from Malaysia at the height of the pandemic.
Operations began in April 2020, with the carrier completing more than 400 missions transporting PPE and testing kits using "preighters", which were passenger aircraft temporarily converted for freight use.
European Cargo collapses into administration as 178 staff lose jobs
|EUROPEAN CARGO
The business later invested heavily in permanently converting its Airbus fleet into dedicated cargo aircraft as demand for freight services expanded.
European Cargo significantly expanded its operations in April 2023 after launching three-times-weekly services between Bournemouth and Chengdu in China.
Additional aircraft capacity was introduced later that year with further fleet expansion in August and November.
By March 2024, the airline had launched operations from Haikou and increased its fleet to six aircraft, including Airbus A340-600 freighters measuring 75.4 metres in length.
LATEST DEVELOPMENTS
The airline recorded a $26million net loss in 2024
|EUROPEAN CARGO
Despite the rapid expansion, the company continued to face mounting financial difficulties.
The airline recorded a $26million net loss in 2024 alongside an operating loss of $24.2million, while financial accounts for 2025 have not yet been submitted.
All six of the carrier's A340 freighters were grounded in May 2026 ahead of the company's collapse into administration.
The airline's final commercial flight took place on May 19, travelling from Karaganda to Maastricht before returning to Bournemouth.
Five aircraft are currently parked at Bournemouth Airport, while another remains at Teesside.
Ownership of the business changed in late 2024 after The Law Debenture Corporation and Carlos Miguel Amorim Dasilva assumed control of the airline, bringing founder Paul Stoddart's involvement with the carrier to an end.
Two former employees told the Bournemouth Echo they were informed about redundancies during a Microsoft Teams call following the collapse.
The airline's history dates back to 1989 when Paul Stoddart founded European Aviation Ltd as an aircraft parts business in Herefordshire.
The company later expanded into aircraft maintenance operations at Bournemouth before rebranding as European Aviation Air Charter in 1993 and establishing the airport as its main operating base.
Over the following decades, the business expanded into crew training, aircraft maintenance services, leasing and aircraft sales before eventually developing its cargo division.
GB News contacted Teneo and European Cargo for comment.