Jet It Files Chapter 7 Bankruptcy Two Years After Closure
Jet It, a fractional jet operator that ceased operations more than two years ago, has filed for Chapter 7 bankruptcy. The filing, which spans 111 pages, was submitted to the U.S. Bankruptcy Court for the District of Delaware on December 24, 2025. The company reported liabilities totaling $36.2 million, with $9.7 million classified as unsecured claims.
Background on Jet It
Founded in 2018, Jet It developed a fractional ownership model primarily using HondaJets. It marketed flight rates starting at $1,600 per hour, exclusive of monthly management and ownership costs. By 2022, Jet It ranked as the 12th-largest private jet operator in the U.S. based on charter and fractional flight hours.
The company experienced significant growth, boosting its flight hours from 11,290 in 2021 to 18,500 by 2022. During its operation, Jet It expanded services to Canada and Europe before grounding its fleet.
Bankruptcy Details
Jet It is not alone in its struggles; it marks the second top-15 private jet operator to file for Chapter 7 bankruptcy in 2023. Earlier this year, Cirrus SF50 operator Verijet also filed for Chapter 7, following a similar low-cost growth strategy.
Creditor Overview
- American Express: Over $600,000 owed
- World Fuel Services: $735,695 owed for jet fuel
- Honeywell: $607,687 owed for aircraft maintenance and parts
- FlightSafety (Berkshire Hathaway unit): $400,981 owed for pilot training
- Agile Premium Finance: $245,768 owed for insurance
- Gogo: $227,775 owed for WiFi services
- Other creditors: Over 200 additional unsecured creditors listed
Asset Summary
Jet It reported assets totaling $1.16 million, which include accounts receivable and $155,964 in cash. The company also claims $874,172 in CARES Act credits from 2021. A potential breach-of-contract lawsuit against Honda Aircraft Company is estimated to be worth $100 million; however, prior settlement agreements may restrict legal action.
Ownership Structure
The bankruptcy filing reveals ownership details. LoJet Holdings, LLC, is the largest investor with a 44.3% stake and is classified as a secured creditor with $26.5 million owed. Co-founder Glenn Gonzalez and partner Vishal Hiremath held 26.8% and 20.1% stakes, respectively. Other minor investors included Locksetp Ventures Fund I, L.P., Microrapter, LLC, and Wyandanch Partners, L.P.
Jet It’s decline reflects a broader trend within the private aviation sector, highlighting the challenges associated with rapid growth and the pressures of sustaining a viable business model.
