MEXICO CITY, MEXICO — Mexico's regional airline operator Aeromar Airlines has announced today, stating that it will be permanently ceasing all of its operations as of February 15, 2023.

The airline cited insurmountable financial losses and the failure to secure new investors as the primary reasons for this decision.

"This decision is the result of a series of financial problems that the airline has been going through, as well as the difficulty of closing investor agreements with viable conditions that would ensure Aeromar's operations in the long term," the airline said in a statement.

Aeromar has been experiencing financial difficulties for several months, and the COVID-19 pandemic has only compounded its challenges. According to reports, the airline has a total debt of MXN7 billion Mexican pesos (equivalent to USD370 million), with half of this amount owed to the federal government in taxes.

In addition, the operator of México City International Airport claims that Aeromar owes them MXN500 million (equivalent to USD26.5 million). The airport has already taken action by seizing two of the airline's hangars, and on February 15, it suspended all services to Aeromar.

Aeromar Airlines is facing mounting challenges as its lessors, and other parties take legal action against the carrier. Recently, the Superior Court of México City seized three ATR72-600s at the request of Export Development Canada, leaving the airline with only one active ATR42-600 and one ATR72-600. These aircraft are parked at México City International and Puerto Vallarta.

In addition to these issues, talks held on February 13 with potential investor Nella Airlines UK failed to result in an agreement, despite the carrier's hopes for a last-minute rescue investment.

Aeromar Airlines has approximately 700 employees and has been grappling with significant financial difficulties. Despite this, the airline has prioritized paying its staff, focusing on wage payments for the year 2022. The carrier's future remains uncertain in light of these ongoing challenges.