SmartLynx Airlines Ceases All Operations

Following the abrupt withdrawal of aircraft the airline determines its long-term outlook is unsustainable.

Parris Clarke

Friday, November 28, 2025 at 10:30 AM ET

Verified

Edited By:

Matt Ryan

[Credit: Wikimedia Commons]

Key Takeaways:

Latvia-based SmartLynx Airlines has ceased all operations immediately due to an unsustainable financial outlook identified by its new management.
The airline, which operated for over 30 years as an ACIM, cargo, and charter carrier and a top wet-lease provider, recently entered a court-supervised restructuring process.
The shutdown follows accusations from Nigerian carrier Air Peace of abruptly withdrawing leased aircraft, causing over $15 million in damages and withheld funds.
SmartLynx was burdened with over €238 million in debt, and employees have claimed they are owed unpaid wages.

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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.