Following the end of the war, the company's fortunes rapidly turned sour. The interwar period was unfavourable for aircraft manufacturers largely due to a glut of surplus aircraft from the war, while a lack of interest in aviation on the part of the British government also hampered its prospects. Airco quickly became unprofitable; during 1920, the firm was sold to Birmingham Small Arms Company, after which its operations were liquidated later that same year. Numerous assets and personnel formerly belonging to the company were integrated into the newly established de Havilland Aircraft Company.
