The Primera Air bankruptcy is taking place later this year as the company has faced a number of problems that have affected its ability to produce profit, while also destroying its reputation due to a bad rapport with passengers.
The Riga, Latvia-based airline said that it has ceased operations as of midnight of October 1, according to a statement released by the company’s board. The company said that it has been unable to turn around its struggles this year, leading to the decision.
Primera Air kicked off its 2018 with strong operational figures thanks in large part to its low-cost, long-haul project with the company’s brand-new Airbus 321neo fleet. Nevertheless, the airline will be filing for bankruptcy following a number of lengthy delays of aircraft deliveries that the company called as “being rocky and incredibly problematic.”
The company faced a number of operational issues, plenty of flights were canceled and many of its passengers were stranded due to these issues, resulting in revenue losses. Primera Air said that in order to meet its obligations with passengers over these mishaps, the company had to take on an additional €20 million ($23.1 million) in costs.
The airline was started in 2004 as a short-haul carrier that had trips to and from Europe and the Middle East. It garnered a reputation over the years, including the title of being one of the best low-cost, long-haul carriers for no-frill fares across the Atlantic Ocean in 2018.