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Canada Jetlines has grounded all flights, temporarily ceasing operations amid a financial crisis at the carrier.
The airline said Thursday it has been unable to find the capital needed to keep flying and plans to file for creditor protection.
“The company … pursued all available financing alternatives including strategic transactions and equity and debt financings. Unfortunately despite these efforts, the company has been unable to obtain the financing required to continue operations at this time,” said spokeswoman Erica Dymond in a release.
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Passengers with existing bookings should contact their credit card company to secure refunds, the company said.
The shutdown follows the resignation of four board members on Monday, including chairwoman and CEO Brigitte Goersch.
It marks yet another airline departure from Canadian skies after the closure of Lynx Air and budget carrier Swoop within the past year as concerns about domestic competition persist.
Until Thursday, the company was flying a few dozen flights per month from Toronto to Miami and Orlando, Fla., and Cancun, Mexico, according to aviation tracking firm Cirium.
Shares of the company on the NEO Exchange were halted late Wednesday afternoon.
Canada Jetlines, which has struggled to get more than a couple of planes off the ground since its inaugural flight in September 2022, faced a series of hiccups even before this week’s turbulence.
On June 30, Eddy Doyle stepped down as CEO after taking on the role in 2021.
In January 2023, Canada Jetlines pressed pause on domestic routes as the carrier refocused on sun destinations and leasing its planes, but said at the time it aimed to resume in-country flights that fall.
In October 2019, the Mississauga, Ont.-based company announced it was postponing its planned December launch and laying off most employees after failing to secure the required financing and losing investment partners.
That setback came after seven years of fundraising and despite Ottawa lifting the foreign ownership ceiling on Canadian airlines to 49 per cent from 25 per cent in 2018, allowing for a wider pool of investors.
This report by The Canadian Press was first published Aug. 15, 2024.
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