The airline’s latest published accounts showed a pre-tax loss of around £19.4million in 2024.
European Cargo Limited has ceased trading after administrators were appointed on June 3 (Image: European Cargo)
A UK cargo airline has collapsed into administration, with 178 workers losing their jobs. European Cargo Limited has ceased trading after administrators were appointed on June 3. The airline, which operated freight flights from Bournemouth Airport and recently launched services from Teesside Airport, blamed reduced flying activity and rising fuel costs for its downfall.
A spokesperson for Teneo Financial Advisory Limited, which has been appointed as the administrator, said: “We can confirm that Stuart Morris, Robert Fishman, and David Soden of Teneo Financial Advisory Limited were appointed as joint administrators of European Cargo Limited on Wednesday 3 June 2026.
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The company started operating freight flights in 2020 (Image: European Cargo)
“The appointment follows a period of significant financial pressure on the business, driven by reduced flying activity and working capital and fuel cost pressures.
“Following their appointment, the joint administrators have been assessing the Company’s position and available options. The Company has ceased trading and, regrettably, redundancies are being made.
“Affected employees are being contacted as a priority and the joint administrators are focused on supporting them through this process, while also engaging with customers, suppliers, creditors, and other key stakeholders. Further updates will be provided as appropriate.”
The collapse comes just months after European Cargo announced plans for a new base at Teesside Airport Business Park.
Five flights a week were due to operate from the airport carrying up to 375 tonnes of freight.
The business was based at Bournemouth Airport (Image: European Cargo)
At the time, Teesside Airport managing director Phil Forster described the agreement as “transformational” and said it was “firmly positioning the airport as a strategic location for aviation, freight and future investment”.
As far as the history of the airline’s parent company is concerned, it goes all the way back to 1989. However, European Cargo itself was launched in 2020.
The company started operating freight flights after responding to a UK Government request to transport personal protective equipment from Malaysia during the Covid pandemic. It later carried out more than 400 flights transporting PPE and testing kits.
The airline went on to convert former passenger aircraft into dedicated cargo planes and expanded its services in China.
Flights between Bournemouth and Chengdu began in 2023, while services from Haikou followed the next year. Its fleet eventually grew to six aircraft.
The collapse comes just months after European Cargo announced plans for a new base (Image: European Cargo)
The business was based at Bournemouth Airport, where its parent company has a much longer history.
European Aviation Ltd was founded by businessman Paul Stoddart in 1989. It started out as an aircraft spares business before moving into aircraft maintenance and charter operations.
In 1993, it became European Aviation Air Charter and made Bournemouth Airport its main hub.
Despite the growth of its cargo operation, the company’s finances deteriorated. Its latest published accounts showed a pre-tax loss of around £19.4million in 2024. That followed losses of roughly £22.8million the previous year. The accounts also showed net liabilities of about £31.1million.
Teesside International Airport confirmed none of its own employees had been affected by the collapse.
A spokesperson said: “We remain committed to supporting the aviation freight sector and are in active talks with other global operators.”
The Express has reached out to European Cargo Limited and Bournemouth Airport for a comment.