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.
Sign-up Successful!
Welcome to The Points Guy!
WELCOME OFFER: 80,000 Points
TPG'S BONUS VALUATION*: $1,650
CARD HIGHLIGHTS: 2X points on all travel and dining, 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®. Plus earn up to $50 in statement credits towards grocery store purchases within your first year of account opening.
- Earn 2X points on dining including eligible delivery services, takeout and dining out and travel. Plus, earn 1 point per dollar spent on all other purchases.
- 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.
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12/31/21.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.
Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.
Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.