Canada Jetlines has grounded all flights and suspended its operations due to a financial crisis, after less than two years in the skies.
The announcement was made on August 15, 2024, effective immediately. The carrier stated that it has been unable to secure the capital needed to continue flying.
Canada Jetlines had explored various financing options, including debt, strategic transactions, equity and debt financing, but none of these were successful.
“The company, overseen by an independent Board committee and advised by external advisors, pursued all available financing alternatives,” the carrier’s spokesperson Erica Dymond said in a press release. “Unfortunately, despite all efforts, the company has been unable to obtain the financing required to continue operations at this time.”
The airline plans to file for creditor protection, indicating that it is seeking ways to restructure its operations. However, it is yet to provide specific information on the timing of the filing and the next steps.
Additionally, the airline advised passengers with existing bookings to contact their credit card companies to get refunds for pre-booked flights. The airline’s statement claims that “every effort is being made to assist passengers at this time”.
The airline’s shutdown comes shortly after the departure of four executives – Ryan Goepel, Beth Horowitz, Shawn Klerer, and Brigitte Goersch as CEO – all of whom resigned on August 12, 2024. Goersch had been the CEO for less than two months, only taking over from former CEO Eddy Doyle on June 30, 2024.
After being unable to compete with major carriers such as Air Canada and WestJet, Canada Jetlines decided to become a very low-cost carrier and shifted its network to leisure travel.
Until the shutdown, the carrier was known for operating flights between the US, Caribbean and Mexico. The airline launched its inaugural flight on September 22, 2022, but has struggled with operations ever since.
Canada Jetlines is the third Canadian carrier to cease operations in recent years. Swoop closed in October 2023 and Lynx Air went under in February 2024. Currently, Flair Airlines is the only budget carrier still operating in Canada.