Summary
- Canada Jetlines struggles continue as CEO resigns and operations temporarily suspended.
- Despite efforts to raise capital, Canada Jetlines is unable to continue operations and seeks creditor protection.
- This is the third Canadian airline to shut down in a year, following Lynx Air and Swoop, due to financial difficulties.
A quick one-two
Canada Jetlines, one of Canada’s youngest and smallest airlines, cannot catch a break. Following the departure of its former CEO, Eddy Doyle, the airline began its search for a replacement, which has not been successful. Brigitte Goersch, who stepped in as interim CEO while the airline searched for a permanent solution,
.
Photo: Vancouver International Airport
After announcing that Goersch, as well as three other executives, were departing the airline, it was announced that operations would continue. But in order to continue operations, Canada Jetlines said it needed to raise capital and that its board would spearhead those efforts. Earlier today, the airline announced it was temporarily halting operations as it had been unable to raise enough to continue. Erica Dymond, a company spokesperson, said,
“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.”
Despite attempting to assist passengers affected by canceled flights, the airline encouraged those with reservations to contact credit card companies to receive refunds. In its short history of less than two years, Canada Jetlines never managed to record a profit and will now seek creditor protection.
Current fleet
Canada Jetlines managed to grow its fleet to four aircraft, all Airbus A320s, to serve its small network of scheduled flights and larger network of charter operations. By the end of the year, the airline had hoped to add another aircraft, and, by 2026, it hoped to have 15. Most of its aircraft had been wet-leased to other airlines, and, according to ch-aviation, were set to return to Canada this week.
Three shutdowns in one year
Canada Jetlines became the third Canadian airline to cease operations in the span of one year. In February,
Lynx Air announced it was shutting down
after two years of operations. Like Canada Jetlines, Lynx closed its doors because of financial hardship. The airline cited inflation, rising fuel costs, exchange rates, cost of capital, regulatory costs, and competitive tension in the market. Like Canada Jetlines, Lynx also filed for protection.
Photo: sockagphoto | Shutterstock
Lynx used the Canadian Federal Act, which gives large companies time to restructure and avoid bankruptcy, and also ensures that creditors collect on their debts. In addition to Lynx,
Swoop shut down in October 2023
and was absorbed by the WestJet brand.
The low-cost carrier lasted longer than Lynx and Canada Jetlines – five years – but the airline’s employees did not lose their jobs and were simply transferred to WestJet. The airline had grown its fleet to 16 aircraft and WestJet CEO Alexis von Hoensbroech highlighted that the loss of the aircraft would leave a gap in Canadian aviation but that WestJet would ensure its fleet would continue to provide affordable travel.
