'Horrendous' rise in fuel costs sends Canadian airline into tailspin

0 Comments | AFP, August, 2008

OTTAWA (AFP) — Low-cost transatlantic carrier Zoom Airlines cancelled all of its flights and suspended its operations on Thursday, blaming a "horrendous" and "unprecedented rise in the price of aviation fuel."

"All flights have been cancelled and passengers are being advised to seek bookings with alternative airlines," the Ottawa-based airline said in a statement.

"The unprecedented rise in the price of aviation fuel which resulted in a 50 million dollar (US) increase in operating costs during the last year and the general economic downturn had made it impossible for operations to continue."

After two of its jets were grounded Thursday morning, the airline said its woes were "a direct consequence of the horrendous increase in the price of aviation fuel and...