Primera Air, via its official website, Twitter and Facebook accounts, confirmed (01-Oct-2018) it is ceasing all operations and will enter into administration, effective midnight of 01-Oct-2018. The airline stated several “unforeseen misfortunate” events within the past two years “severely affected” its financial standing, including:
- In 2017, Primera Air lost one aircraft from operations due to severe corrosion problems and had to bear the total cost of reconstructing, resulted in a loss of more than EUR10 million;
- The carrier’s long haul low cost operations, which began in 2018, were hampered by “severe delays of aircraft deliveries”. This in turn led to operational issues, cancellations and lost revenue;
- In addition, Primera Air leased aircraft and beared additional costs of over EUR20 million to fulfil its obligations to passengers.
Primera Air stated: “Weighting the potential losses due to future delivery delays, and the added exposure to our partners and lessors, and bearing in mind the difficult environment that airlines are facing now due to low prices and high fuel costs, we have decided to cease operations now, where it will have a smaller effect on our clients, due to the timing of the year, rather than increasing the exposure. Without additional financing, we do not see any possibility to continue our operations”.