Canada Jetlines said it is temporarily stopping airline operations and intends to file for creditor protection, days after its CEO and three other board members resigned.
The airline acknowledged in a release it has been unable to obtain the financing required to continue operations, offering few other details.
“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,” per the release.
“The company has historically financed its future requirements through a combination of debt, equity or other facilities. The company, overseen by an independent board committee and advised by external advisors, pursued all available financing alternatives including strategic transactions, and equity and debt financings.”
This is the latest in a wave of airline closures in Canada, following the recent shuttering of discount carriers Swoop and Lynx Air.
Observers have been critical of start-up airlines’ ability to compete in the Canadian market, and the Competition Bureau has launched a market study on the issue.
Flair Airlines, one of the few Canadian discount carriers to sustain operations in the country, has welcomed the study.
“Canada Jetlines worked tirelessly to provide Canadians with a much-needed alternative to the status quo in aviation, and their departure is a sobering reminder of the challenges that face airlines committed to fair competition in this country,” said Maciej Wilk, Flair CEO, in a statement.
“Flair’s mission has always been to drive market competition, ensuring Canadians have access to the lowest possible fares. We are more determined than ever to keep that promise.”
Critics see the dominance of Air Canada and WestJet as an impediment to competition from start-ups, and as a source of the high cost of domestic air travel. Swoop began as an ultra-low-cost WestJet subsidiary but has since been absorbed into the company’s mainline operations.
“Competition in Canadian aviation is not just important—it’s essential,” said Wilk. “We will honour the spirit of competition that Canada Jetlines helped foster by continuing to push the boundaries of what’s possible, staying true to our mission, and ensuring that Flair remains a vital choice for travellers across Canada.”
This has been a year of turmoil for Canada Jetlines.
On Monday, the company announced Brigitte Goersch had resigned as CEO, and three other board members had also stepped down.
Goersch had agreed to serve as CEO during a recruitment search that began in May 2024, following the retirement of Eddy Doyle, who had served in the role since 2021.
In April, chief operating officer Brad Warrant also left the company. On Aug. 14, the Canadian Investment Regulatory Association said it had temporarily suspended trading Canada Jetlines stock.
“Every effort is being made to assist passengers at this time,” the airline said in a statement on Aug. 15. “Passengers with existing bookings are advised to contact their credit card company to secure refunds for pre-booked travel.”
