" Flyr was unsuccessful with the new financial plan, and the board concluded that there are no alternatives for further operation," the airline said in a statement dated January 31st.
On February 1st, The company announced that it would file for bankruptcy. Flyr has now ceased all its operations.
The Norwegian startup airline had held out hope that a proposed agreement to conduct wet-lease flights for an unrevealed European carrier during the summer months would keep the company afloat. Despite these efforts, Flyr struggled to maintain operations during the less demanding winter season.
However, these plans were shattered when Flyr failed to secure underwriting for a vital rights issue, which was a crucial component of the proposed wet-lease deal for six aircraft. Despite possessing a fleet of 12 aircraft, including both Boeing 737-800s and MAX 8s, Flyr was forced to significantly reduce the utilization of its fleet during the winter season in a cost-saving effort.
According to the Norwegian bankruptcy registry, the first gathering of Flyr's creditors has been slated for February 16th at the district court. When the airline began operations at the end of June 2021, it chose to adopt a more employee-focused approach instead of outsourcing in order to minimize expenses. Flyr built a network that combined domestic routes with popular city and resort destinations in Europe.
During its first six months of operation, Flyr established a fleet of five Boeing 737 aircraft, including the latest MAX variant, and by the end of 2021, its load factor reached approximately 54%. However, the prolonged pandemic restrictions hindered the recovery of air transportation, and Flyr was forced to endure significant losses.
At the start of last year, Flyr undertook fundraising efforts, starting with an NKr250 million ($25 million) offering in January, followed by an investment from the Norwegian media company TV Gruppen and an NKr250 million private share placement in May.
Throughout the first half of the year, Flyr continued to grow, increasing its fleet to ten jets and expanding its network to nearly 40 destinations. However, as the pandemic recovery gained momentum, the ramp-up costs for the summer season, combined with rising fuel prices and a strong US dollar, impacted Flyr's financial performance, despite achieving load factors in the range of 80-90% in mid-year.
Flyr had expanded its fleet to a total of 12 aircraft, but in an effort to conserve its cash reserves, the airline was forced to reduce its capacity drastically. The carrier also began reducing its personnel to restore its growth trajectory once the winter had passed.
Flyr's fleet of 12 aircraft was mostly sourced from US lessor Air Lease, which supplied all six of the airline's 737 MAX jets and a 737-800. The remaining five 737-800s were provided by other leasing companies, including Standard Chartered.
