Another Canadian discount airline has been grounded.
Canada Jetlines announced Thursday that it would be temporarily ceasing operations effective immediately.
In a statement, the Ontario-based airline said that keeping its planes in the air depended on the company’s ability to raise adequate funds and grow operations “to the point where it [could] commence profitable operations.”
“Unfortunately despite these efforts, the Company has been unable to obtain the financing required to continue operations at this time,” said Erica Dymond, the airline’s media spokesperson.
The airline said it intends to file for creditor protection.
Canada Jetlines
Canada Jetlines said it is making “every effort” to assist passengers, and those with existing bookings should contact their credit card company to secure refunds for pre-booked travel.
The news comes after four Canada Jetlines executives announced they were resigning earlier this week.
The airline launched its inaugural flight in September 2022 after weeks of delays. It primarily flew out of Toronto to holiday destinations in Mexico and the US.
Canada’s low-cost airline sector has seen some major setbacks in the past few years.
In February, low-cost airline Lynx Air shut down for good and filed for creditor protection. That was preceded by the shutdown of Swoop in October 2023.