Low-cost Canadian airline Canada Jetlines has filed for bankruptcy, having ceased operations in August 2024.
The company announced the news in a press release through the Travel Industry Council of Ontario (TICO) on September 18, 2024, but did not issue an official public notice.
The low-cost carrier went bankrupt on September 11, 2024, and voluntarily assigned its assets for the benefit of its creditors under the Bankruptcy and Insolvency Act.
The shutdown also affects its subsidiary, Canada Jetlines Vacations, which is a travel retailer and tour operator. Before the announcement, TICO stated that Canada Jetlines Vacations had canceled all upcoming vacation package bookings, which included hotels and flights, and had refunded any travelers who were impacted.
Customers who purchased Canada Jetlines flight tickets from a TICO registered travel agency or website should have received their refunds. Those who did not receive one may have an eligible claim against the Ontario Travel Industry Compensation Fund.
“In the meantime, affected consumers can contact their credit card company and travel insurance provider, if applicable, to seek refunds,” the press release continued.
However, those who bought tickets directly from Canada Jetlines or through a travel agency website outside of Ontario are not eligible for a refund from the Compensation Fund, according to TICO.
On August 15, 2024, Canada Jetlines suspended all its operations due to a financial crisis the airline has been struggling to deal with for some time. The suspension was effective immediately.
Canada Jetlines has been in operation for under two years and is the third Canadian carrier to have ceased operations in recent times.