Air Belgium has announced the cancellation of all passenger services to adjust its focus and reorganise the business.
The Board of Directors have said their focus is to be exclusively on cargo and ACMI operations following a thorough review.
Ultimately, Air Belgium will seek bankruptcy protection to have time to reorganise its operations and emerge more positively.
Following its launch in 2018, the Belgium-based carrier came with ambitious plans as it aimed to focus on the long-haul market with services globally. However, these services were short-lived following a lack of demand and overall profitability.
Pair the mistakes made with the network and the global pandemic; the airline struggled to hit the ground running before it adjusted its business model to focus on leasing and freighter services.
While the pandemic and poor demand have made the airline struggle, it also notes that the war in Ukraine, heightened fuel prices, and a weakened economy that has seen inflation skyrocket have made them stumble.
After October 3rd, Air Belgium will pull these passenger flights as the financial situation did not allow the company to continue them.
However, it’s not all doom and gloom as Air Belgium noted in a release that other business areas are profitable, and it’ll look towards keeping these parts airborne as the restructure takes place.