Canada Jetlines has announced it is grounding all flights and temporarily ceasing airline operations with immediate effect, becoming the latest casualty in Canada’s troubled commercial airline industry.
The airline, which primarily served sun destinations from Toronto, revealed on Thursday, August 15, that it has been unable to secure the necessary capital to continue operating and intends to file for creditor protection, according to CBC News.
“The company … pursued all available financing alternatives including strategic transactions and equity and debt financings,” stated spokeswoman Erica Dymond in a press release. “Unfortunately, despite these efforts, the company has been unable to obtain the financing required to continue operations at this time.”
The airline advised passengers with existing bookings to contact their credit card providers to arrange refunds, adding, “Every effort is being made to assist passengers at this time.”
This shutdown comes after the resignation of four executives on Monday, August 12, including CEO Brigitte Goersch. It also marks another airline’s exit from Canadian skies following the closures of Lynx Air and budget carrier Swoop within the past year.
Headquartered in Mississauga, Ontario, Canada Jetlines launched its first flight in September 2022, serving Canadian travellers within the country and to destinations in the U.S., Caribbean and Mexico. The carrier also provided charter flights for sports teams and businesses, leasing its fleet to other airlines during the summer months.
Former CEO Eddy Doyle described the airline as a leisure carrier, though it was initially intended to be an ultra-low-cost carrier. That business model was later abandoned due to high taxes on discount fares in Canada and the difficulty of competing with industry giants Air Canada and WestJet, Doyle explained to CBC News in February.
