OTTAWA (PGN) >> Discount overseas airline Zoom hsuspended operations earlier today and will immediately file for insolvency.
"The collapse of Zoom is a result of matter beyond our control," reads a statement on the company website from founders Hugh and John Boyle. "Only last year Zoom Airlines made profit, but that turned into a loss in the last year due to the unprecedented increase in the price of aviation fuel and the economic climate. The price of oil resulted in our fuel bill jumping by nearly $50 million in one year and we could not recover that from passengers who had already booked their flights."
Zoom flies between Canada and several airports in the UK.
The sudden shut-down has left many Zoom passengers stranded but other airlines have reportedly offered them special fares. Passengers with flights booked on future Zoom flights can seek refunds from their credit card providers.
"We would like to thank the many thousands of passengers who chose to travel with Zoom during the last seven years and efforts of the airline's staff."