Flair Airlines is searching for new strategic partners to inject fresh capital into the ultra-low-cost carrier as it looks to restructure its finances and revive long-term growth plans.
Eric Tanner, Flair’s vice-president of revenue management and network planning, said the airline is in discussions with potential investors who could buy equity in the company. The move is aimed at addressing debt accumulated during the pandemic and enabling Flair to grow its fleet beyond the 20 aircraft it currently operates.
Tanner stated in an interview that “What we’re really looking at is restarting our growth ambitions and finding strategic equity partners who are going to help us get onto that level,”. He added that discussions are underway among existing investors to restructure the airline’s balance sheet.
Tanner emphasized that the search for investors is not driven by immediate financial distress. He said the airline itself is not undergoing operational restructuring and has shown recent signs of financial improvement, posting profits in July and August.
He said that “The business is in frankly the best shape that it’s been in, from a performance perspective,”.
According to Tanner, Flair’s improved performance has been helped by reduced competition in Canada’s budget airline segment. Earlier this year, low-cost rival Lynx Air collapsed and filed for creditor protection, while WestJet shut down its ultra-low-cost subsidiary, Swoop, in October 2024.
Despite the recent upswing, Flair has faced significant financial challenges since launching its first flight in 2017. As of November, the airline owed the federal government $67.2 million in unpaid taxes linked to import duties on its Boeing 737 fleet. In January, then-chief executive Stephen Jones announced the suspension of expansion plans due to aircraft delivery delays and mounting debt.
Flair’s difficulties were further highlighted last year when four of its planes were repossessed by a leasing firm that alleged the airline had missed millions of dollars in rent payments. Three of those aircraft are now operating with Ethiopian Airlines, while another is flying for South Africa-based FlySafair.
Tanner noted that Flair would prefer to bring in Canadian financial partners. Under federal regulations, foreign ownership of a Canadian airline is limited to a maximum of 49 per cent.
As Flair looks to stabilize its finances and plan for future expansion, the airline says its focus remains on sustaining recent operational gains while securing the investment needed to support long-term growth.
