From October, Belgian Airlines will focus exclusively on air cargo transportation and leasing its aircraft, and will also begin restructuring at the debt-laden airline.
In accordance with the decision of the company’s Board of Directors, in order to reduce the debt balance and return to profitable operation, it is embarking on a restructuring program, for which it has requested the approval of the competent court.
If the request is approved, the airline can begin negotiations with its creditors to reduce its debt and reschedule interest payments.
The company’s board of directors also decided to cancel all scheduled passenger flights of Belgian Airlines as of October 3, and focus exclusively on its wet-lease and cargo business in the future.
The airline blames the effects of the pandemic and conflict in Ukraine, as well as high fuel prices and inflation, for its passenger flights causing significant losses, which has had a serious impact on the company’s results and cash balance.
As we wrote previously, the airline was in a critical financial situation, and without engaging a new investor, its future was uncertain. Given the strong competition, the airline has already canceled passenger flights to the Caribbean in the spring, leasing available capacity for charter and wet-lease flights, and only keeping its scheduled flights to Mauritius and South Africa.
