Cash crunch forces Interjet to cancel all flights

Sunday, 03 Nov, 2020 0

Mexican budget carrier Interjet canceled all flight through Monday as it was unable to settle its aviation fuel bills.

The airline admitted cash flows have taken a big hit and it is struggling to stay afloat.

However, it says it will resume operations on Tuesday.

"Additionally, some of the company’s aircraft are undergoing maintenance tasks, which caused a reorganization of flight itineraries. Interjet regrets the inconvenience," it said.

Federal airport operator Airports and Auxiliary Services (ASA) said Interjet has a pre-pay plan for its fuel supply but had not paid on time.

ASA says the airline must pay for fuel one day in advance but had not done so, effectively grounding its fleet.

"Interjet didn’t complete the payment for the purchase of jet fuel and for that reason fuel wasn’t supplied," ASA said.

The airline said: "Airlines have been the hardest hit by the negative effects of the Covid-19 pandemic. This situation is no different for Interjet, which has registered an effect in its operations and its cash flow."

Written by Ray Montgomery, US Editor

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TravelMole Editorial Team

Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.

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