8.6 C
New York
Tuesday, July 27, 2021
Home Business Canadian travel firm FlightHub seeks creditor protection

Canadian travel firm FlightHub seeks creditor protection


Montreal-based travel firm FlightHub is seeking protection from its creditors amid the COVID-19 pandemic that has wiped out demand for travel.

The company operates two main brands, FlightHub in Canada and JustFly in the U.S.

Founded in Montreal in 2012, the company has grown to become a major player in the travel industry, selling more than $3 billion worth of vacation packages to five million customers last year. The company works with more than 200 different airlines, and makes money by getting a cut of every ticket sale the airlines get from their booking platform.

Just as airlines have been hit hard by the collapse in demand for travel caused by COVID-19, so has FlightHub.

The company filed for protection from its creditors under the Companies’ Creditors Arrangement Act, the section of Canadian law that deals with insolvent companies.

In court filings, the company says it turned a profit in each of the past three years, up until the COVID-19 pandemic, which it described as “catastrophic” to its business. Travel restrictions have caused revenues to plummet by more than 90 per cent in just two months, and the company lost $8 million in the first quarter of 2020.

The losses show no sign of dissipating, either.

“In addition to the significant reduction in revenues from new reservations, many of the previous reservations made by customers prior to the COVID-19 outbreak have been cancelled, leading to a significant loss in previously recorded revenues,” FlightHub said.

The company says it has recently laid off about half of its staff in Montreal, and 90 per cent of its U.S.-based employees. In total, that’s 108 jobs cut from its previous work force of 200 people — 180 in Canada and 20 in the U.S.



Source link

Today news
Today News 1 runs four of the western GTA’s most influential media websites, offering news, food, lifestyle and entertainment coverage for millions to the Golden Horseshoe and GTA regions. The independently-run, online news source was founded in 2019 and specializes in everything from breaking news to food and restaurant, arts and entertainment and lifestyle coverage.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Australian company BHP makes takeover bid for Canada’s Noront Resources

Another Australian company is moving forward with a takeover bid for Noront Resources, with a cash offer for all outstanding and issued shares of the Canadian...

Wildfires in Canada are creating their own weather systems, experts say

A combination of intense heat and drought conditions is causing wildfires in Western Canada to generate their own weather systems, experts say. Michael Fromm,...

To prepare for future heat waves, classify air conditioners as medical devices, UBC expert says

Barbara Reed did everything she could to help Ollie O'Rourke keep cool on a late June evening during the deadly heat wave in...

Well water fears fuel calls to halt proposed bottling plant near B.C. village

Angie Kane knows how important well water is when you live in the heart of dry, rural B.C. For 17 years, she...

Recent Comments