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. <\/p>\n\n\n\n
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. <\/p>\n\n\n\n
The airline did not release a direct bankruptcy announcement, and its website<\/a> is now offline. <\/p>\n\n\n\n TICO said it previously received confirmation Canada Jetlines Vacations had cancelled all future vacation package bookings, and issued refunds to affected consumers. <\/p>\n\n\n\n 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. <\/p>\n\n\n\n In August, the airline announced it had failed to secure the financing needed to continue operations, after reportedly losing $14.2 million<\/a> over a 12-month period ending March 2024. <\/p>\n\n\n\n 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. <\/p>\n\n\n\n Canada’s vast geography and small population base, along with high operating and administrative costs, have made the ULCC model difficult to sustain. <\/p>\n\n\n\n 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. <\/p>\n\n\n\n