Canada Jetlines is suspending operations, effective immediately, and planning to file for creditor protection.
The company says its continuing operation has been dependent on its ability to raise adequate financing and develop to the point of profitable services.
It states that it has “pursued all available financing alternatives” – including strategic transactions, and debt and equity options.
“Unfortunately despite these efforts, the company has been unable to obtain the financing required to continue operations at this time,” it says.
Four of the carrier’s directors, including chief executive Brigitte Goersch, had resigned from the company on 12 August.
Canada Jetlines states that it will be “temporarily” ceasing operations from 15 August, and intends to file for creditor protection.
“Every effort is being made to assist passengers at this time,” it adds. “Passengers with existing bookings are advised to contact their credit card company to secure refunds for pre-booked travel.”
Canada Jetlines obtained its air operator’s certificate in August 2022 and commenced flights the following month, before securing approval to serve US destinations.
It made full-year net losses of C$11.5 million ($8.4 million) in 2023.
At the end of last year it cautioned that it had an accumulated deficit of nearly C$32 million and stated that it would need additional financing to fund working capital requirements and other expenditure over the course of this year – as well as funding to expand its operations and obtain additional aircraft.
Canada Jetlines uses Airbus A320s and had been intending to expand to a fleet of seven aircraft by the end of this year, and 15 by 2026.
