Libya’s national airline, Afriqiyah Airways, is facing an unprecedented crisis that has pushed it to the brink of bankruptcy.
The airline is grappling with severe financial mismanagement, operational paralysis, and escalating employee protests, all of which threaten to shut it down entirely.
As of July 2025, nearly all of Afriqiyah Airways’ fleet remains grounded. Only two Boeing 737 aircraft are still operating, both plagued by technical issues due to unpaid insurance premiums and poor maintenance. The airline’s inability to meet basic operational costs reflects its deepening financial crisis, which has been worsened by allegations of corruption and misuse of funds within its leadership.
The crisis escalated sharply on July 6, 2025, when hundreds of employees, supported by union leaders, organized a peaceful protest in Tripoli demanding the immediate dismissal of the airline’s board of directors.
Workers accuse the leadership of administrative corruption, reckless financial decisions, and secret attempts to sell company assets without transparency.
Among the most serious allegations is the leasing of an unqualified Jordanian aircraft for $1.6 million and the questionable misallocation of $21 million received from Turkish Airlines, reportedly used for unauthorized purposes outside of agreed maintenance programs.
Union leaders have called for a full independent investigation into these financial violations. They have appealed directly to Libya’s Prime Minister and the Minister of Transportation, demanding the dissolution of Afriqiyah Airways’ holding company and its transfer to direct government oversight to restore accountability and prevent the airline’s collapse.
The unions warn that the airline’s downfall would not only impact its employees—over 1,600 Libyan families depend on it—but would also deal a devastating blow to Libya’s already fragile aviation and tourism sectors.
Most of Afriqiyah’s flights have already been canceled or indefinitely suspended, damaging its reputation and leaving passengers stranded. The broader impact could destabilize Libya’s connectivity with regional and international markets, further weakening its economy.
The collapse of Afriqiyah Airways would leave Libya without a functional national carrier, widening the gap in North Africa’s aviation market. The airline’s crisis reflects larger systemic issues in Libya’s state-owned enterprises, which have long suffered from corruption, inefficiency, and political instability.
The coming weeks will be critical. Without decisive government action—through leadership changes, financial restructuring, and strict oversight—Afriqiyah Airways is likely to slide into insolvency, leaving Libya’s aviation industry and economy facing long-term damage.
