TORONTO — Canada Jetlines has officially closed up shop.
A spokesperson for the airline said Canada Jetlines has grounded its planes and ceased operations.
It’s a quick turnaround from Monday’s statement when the airline said its board of directors and management were actively working on securing potential sources of additional capital, and gave assurances that “at this time the airline is continuing operations.”
Spokeswoman Erica Dymond now says “the company … pursued all available financing alternatives including strategic transactions and equity and debt financings. Unfortunately despite these efforts, the company has been unable to obtain the financing required to continue operations at this time.”
Passengers with existing bookings should contact their credit card company to secure refunds, the company said.
The shutdown follows the resignation of four board members. Brigitte Goersch, Ryan Goepel, Beth Horowitz and Shawn Klerer all stepped down from the airline’s board of directors.
Goersch also resigned as CEO. Goepel, who is President and CEO at Global Crossing Airlines, was chairman of the Canada Jetlines board.
In its Aug. 12 statement Canada Jetlines said: “The continuing operations of the company have been dependent upon the company’s ability to raise adequate financing and to grow the airline to the point where it can commence profitable operations. The company has historically financed its future requirements through a combination of debt, equity or other facilities. As a result, the company will need to raise additional capital to continue operations. The company’s board of directors and management is actively working on potential sources of additional capital. Additional details will be provided once available.”
The statement ended on this note: “At this time the airline is continuing operations.”
Not long after, airline news site GateChecked reported that Canada Jetlines crew and staff received a memo from management yesterday indicating that an announcement about the airline’s closure was expected soon.
Canada Jetlines is the latest Canadian carrier to fold amid an increasingly competitive market and softening post-pandemic demand. Low-cost carrier Lynx Air called it quits in February 2024.
Canada Jetlines is said to have “unofficially discontinued scheduled service in late June” and had been operating charters.
In May 2024 chief executive Eddy Doyle announced his departure from the company effective June 30.
With file from The Canadian Press
