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Libyan Airlines on Edge of Financial Collapse

September 11, 2025
Libyam Airlines on Edge of Financial Collapse

Libyam Airlines on Edge of Financial Collapse

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Libyan Airlines, the country’s oldest and once-proud national carrier, is facing the threat of bankruptcy after reporting cumulative losses of more than $371 million since 2011. The airline, which has been operating for six decades, has warned that without urgent state intervention it may be forced to shut down entirely.

According to the head of the Air Transport Union, the company has suffered a dramatic collapse in operations due to years of war, political division, and economic turmoil. Once serving 20 international destinations across the Middle East, Europe, and Africa, the airline now flies to just three countries.

Its fleet has also been reduced from dozens of aircraft to only two functioning planes, leaving the company unable to maintain even basic services. The crisis threatens the livelihoods of more than 5,000 employees, many of whom now face an uncertain future as the airline struggles to stay afloat.

Libyan Airlines has issued repeated appeals to authorities for rescue support, warning that without immediate financial and structural reforms, the company risks disappearing altogether.

Founded in 1964 under the name Kingdom of Libya Airlines, it became the nation’s first carrier and a symbol of modernization. After the 1969 revolution, it was renamed Libyan Arab Airlines, before adopting its current name, Libyan Airlines, in 2006. For decades, it represented national pride and connected Libya to the wider world.

Today, however, the airline is burdened by mismanagement, poor investment, and the continuing instability that has gripped Libya for more than a decade. Analysts say that unless there is a serious plan for restructuring, fleet renewal, and regional partnerships, the company’s survival is in grave doubt.

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