Verijet's Chapter 7 Filing Cancels All Flights, Leaving Customers Owed $10.5M

Florida-based private jet operator Verijet has filed for Chapter 7 bankruptcy. This filing immediately canceled all flights. The company, once a top-15 US private jet operator, now faces liquidation. Verijet's collapse highlights financial stress in the US private jet market.

The Path to Liquidation

Verijet filed its petition in the Southern District of Florida on October 9, 2025. Chapter 7 bankruptcy means direct liquidation. This is different from Chapter 11, which allows for restructuring. The filing shows the company has only $2.5 million in assets. It faces approximately $38.7 million in liabilities.

The company's downfall followed several key events. Founder and CEO Richard Kane died suddenly in September 2025. This was followed by an onslaught of customer lawsuits. Customers claimed frequent cancellations and delays. Verijet had also failed a SPAC merger deal in 2023.

Impact on Customers and Creditors

The Chapter 7 filing lists over 200 unsecured creditors. Most affected are fractional jet card customers. Eighty-one customers are owed a combined $10.5 million in prepaid flight credits. The largest single balance owed to a customer was $728,000.

Customers purchased these jet cards for flight hours. Recovery of these funds will be a lengthy process. It depends on the sale of the company's limited assets. Other creditors include aircraft lessors and fuel suppliers.

Fleet and Operations

Verijet launched operations in 2020 during the pandemic. It rapidly grew using the single-engine Cirrus SF50 Vision Jet. This jet was marketed as a cost-effective, "green air tax" option. At its peak, the fleet reached 20 aircraft in 2023.

Verijet's model relied on competitive pricing. They offered hourly rates lower than many twinjets. However, customer disputes arose over flight availability. The company maintained that flights were subject to crew and aircraft availability.

Broader Aviation Industry Trends

Verijet's failure is part of a wider trend. Another former top-15 operator, Jet It, also filed for Chapter 7 in December 2025. Jet It operated a fractional program using the HondaJet.

This highlights the volatility of the fractional ownership sector. Rapid growth models face significant financial risks. Major commercial airlines also faced financial strain in 2024 and 2025. For instance, Spirit Airlines filed for Chapter 11 in 2024.

Industry bodies like the IATA track global financial health. Regulators like the FAA oversee operational safety. These failures underscore the need for strong financial oversight. Passengers should review their travel insurance policies. This is especially true for prepaid flight programs.

For more updates on the financial health of the sector, visit our commercial aviation news section. The overall market remains challenging, even for established carriers like Emirates.