Fuel Prices Lead to the Demise of Yet Another Airline
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
Berlin-based budget airline Germania has filed for bankruptcy, citing the rising cost of fuel and currency fluctuations as two main factors in its demise.
“We ultimately failed to successfully complete our financing efforts to meet short-term liquidity needs,” managing director Karsten Balke said in a statement. “We very much regret that, as a consequence, we had no choice but to file for bankruptcy.”
All Germania flights to 42 destinations in Europe, Africa and the Middle East were cancelled effective immediately, and travelers who booked directly with the carrier would not be offered replacement flights.
The low-cost carrier was founded in 1978 and recently transported more than four million passengers a year. This is the second German airline within two years to drown amidst financial woes. Air Berlin, the nation’s second largest airline at the time, claimed insolvency in August 2017.
Germany isn’t the only country with struggling budget carriers. Ryanair announced Monday that the airline suffered a net loss of $22.4 million in Q3 2018 — the ultra low-cost carrier’s first since March 2014.
Welcome to The Points Guy!
WELCOME OFFER: 80,000 Points
TPG'S BONUS VALUATION*: $1,600
CARD HIGHLIGHTS: 3X points on dining and 2x points on travel, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®.
- Enjoy benefits such as a $50 annual Ultimate Rewards Hotel Credit, 5x on travel purchased through Chase Ultimate Rewards®, 3x on dining and 2x on all other travel purchases, plus more.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,000 toward travel.
- With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.