Plus Ultra has repaid none of the €53 million in public loans it received in 2021, as it seeks to restructure its finances and operations. ABC reported that the airline had filed a pre-insolvency communication with a Madrid court, giving it time to begin negotiations with creditors. The pre-insolvency mechanism, known in Spain as a preconcurso, provides a framework for creditor talks before a formal insolvency proceeding. Filing does not itself declare bankruptcy.
The company confirmed the restructuring filing in a statement reported by Europa Press. It is also preparing an employment regulation file, or ERE, but the number of jobs at risk has not been determined. On 12 November 2026, Plus Ultra notified workers’ representatives of its intention to begin the collective redundancy procedure. The measure would cover the Madrid work centre, including central services and the base at Adolfo Suárez Madrid-Barajas airport.
Company documents sent to workers’ representatives list 679 employees: 668 in active service and 11 on leave. That puts the proposed process at nearly 680 staff, although its final reach remains unresolved. Plus Ultra has also proposed temporary measures through an ERTE, including reduced working hours or contract suspensions. The airline plans to reduce its fleet and suspend selected routes; Deia reported that it intends to cut regular commercial flight hours by more than 61%.
The airline has also pared back its passenger network. It has cancelled services to Buenos Aires and Lima, retaining connections from Madrid and Tenerife to Caracas. Plus Ultra says fuel costs are lower in Venezuela, making those routes viable. Its other continuing activity is ACMI leasing, which supplies other airlines with aircraft and crew; maintenance and insurance are included in the model. Plus Ultra does not bear the fuel cost in that arrangement.
The carrier attributes its financial pressure chiefly to rising kerosene prices during the Iran war. It has also cited geopolitical disruption, including natural disasters and airspace closures linked to armed conflicts, saying these have undermined the sector’s expectations. The company says fuel costs rose by three figures at certain points during the conflict. Its stated reasons for the restructuring also include liquidity shortages and stalled discussions with potential investors.
The 2021 rescue came through the state holding company SEPI in two loans: €19 million in ordinary credit and a €34 million participating loan. The €53 million package was provided in March 2021 through Spain’s Fund for the Support of the Solvency of Strategic Companies, after the pandemic and the collapse in passenger demand placed the airline at risk of failure. Plus Ultra has paid around €12 million in interest, but ABC reported that it had not repaid any of the principal. The airline has sought to renegotiate the repayment calendar with SEPI without success. It has also asked SEPI to defer repayment of the first €19 million by two years; the request had not been accepted at the time it was reported.
The remaining Tenerife service is one of the carrier’s few passenger routes; RUSSPAIN has also covered Canary Islands university funding. For Plus Ultra, the immediate restructuring process now centres on creditor negotiations and a workforce plan whose scale has yet to be set.
