SmartLynx Airlines Ceases All Operations

Latvia-based ACIM, cargo, and charter carrier, SmartLynx Airlines announced on Monday it was ceasing all operations, effective immediately, after new management at the company determined that its financial outlook and long-term sustainability were untenable.  

The cutoff of operations marks the end of more than 30 years of service for the European carrier. SmartLynx began operating Soviet-era airliners, before expanding and becoming one of Europe’s top wet-lease service providers.

Earlier last month, SmartLynx entered into a court-supervised restructuring process after the company was sold by Avia Solutions Group to Dutch-based fund, Stichting Break Point Distressed Assets Management. As part of the restructuring plan, management was required to submit a restructuring plan by February 28, 2026. 

During the managerial transition the outlook remained bleak as reports of broken lease agreements began to arise. On Saturday, Nigerian carrier Air Peace accused SmartLynx of abruptly withdrawing several Airbus A320 aircraft that were used to support Air Peace’s domestic network, resulting in operational disruptions and more than $15 million in financial losses.

“We consider this action by SmartLynx to be a serious breach of contract, fraudulent, and a premeditated scheme,” Air Peace CCO Nowel Ngala said. “This withdrawal was done without prior notice. Over USD 5 million of our money, including more than USD 1 million in security deposits, is still with them. Their action has caused over USD 15 million in damages to Air Peace.”

In the wake of the announcement to end operations, one First Officer at the beleaguered airline claimed that he is still owed around $6,000 in compensation.

As the airline began its court-supervised restructuring process it was strapped with debt levels of over $238 million Euros.