What Happens When an Airline Shuts Down? 5 Things You Need to Know The complete shut down of Primera Air and now WOW Air are examples of the reality that an airline can abruptly fail. Without notice, even a large airline can shutter, leaving some passengers stranded away from home and others responsible for out-of-pocket costs for worthless tickets. While a big U.S.-based airline hasn’t failed in recent years, financial analysts have said that Europe’s high number of low-cost startups (which are increasingly expanding to the U.S.) make those airlines’ survival questionable. What You Need to Know When an Airline Fails Although specific circumstances are unique in each case, you can see some patterns reoccur each time an airline fails. Here’s what you need to know about the potential threats of an airline faltering, and what an airline failure means for travelers. Bankruptcy is not the same as airline failure. Airlines can go bankrupt without fai...