Canada Jetlines has been declared bankrupt roughly a month after ceasing operations, signalling another blow to Canada’s experiment with ultra-low-cost air travel.
The bankruptcy is effective Sept. 11, 2024, according to a statement from the Travel Industry Council of Ontario (TICO), the province’s travel regulator. Canada Jetlines ceased operations in mid-August.
The airline did not release a direct bankruptcy announcement, and its website is now offline.
TICO said it previously received confirmation Canada Jetlines Vacations had cancelled all future vacation package bookings, and issued refunds to affected consumers.
The organization directed Canada Jetlines customers who booked through a TICO-registered travel agency, and who have not received a refund, to submit a claim.
In August, the airline announced it had failed to secure the financing needed to continue operations, after reportedly losing $14.2 million over a 12-month period ending March 2024.
Edmonton-based Flair Airlines is the only self-described ultra-low-cost carrier (ULCC) in Canada, after the recent closures of its competitors Swoop and Lynx Air.
Canada’s vast geography and small population base, along with high operating and administrative costs, have made the ULCC model difficult to sustain.
Rising demand for air travel bodes well for the industry’s future, but start-ups have struggled to gain a foothold while competing with deep-pocketed national carriers like West Jet and Air Canada.
A final market report into competition in Canada’s airline industry is expected in June 2025, following consultation and analysis led by the Competition Bureau.
Lies – some employees have been advised that they will retain their jobs and they still have one aircraft.