A UK airline has collapsed into administration.
European Cargo, headquartered at Bournemouth International Airport, appointed joint administrators on Wednesday after a period of “significant financial pressure.”
The company cited reduced flying activity, working capital challenges, and rising fuel costs as contributing factors.
A statement published on European Cargo’s website said: “The company has ceased trading and, regrettably, redundancies are being made.
“Affected employees are being contacted as a priority – while also engaging with customers, suppliers, creditors and other key stakeholders.”
European Cargo specialised in using Airbus A340-600 aircraft to transport freight.
The airline flew personal protective equipment (PPE) into Bournemouth Airport during the Covid-19 pandemic.
Aviation analyst Tomos Shah-Howells described the collapse as “like a real sucker punch” for Bournemouth airport, given the airline’s recent growth plans and investments.
Mr Shah-Howells said: “You look at where this airline was heading and the ambitions they had and the growth they had.
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“And I know that Bournemouth did absolutely fantastic work helping them expand their operations…
“My heart really goes out to the people at Bournemouth airport and all of the staff that work there as well.”
He said the business model was unique but relied on older, less fuel-efficient aircraft.
Mr Shah-Howells said: “They use the Airbus A340-600 aircraft, it’s a very old aircraft, a four-engine, large, wide-body plane.
“It’s not traditionally used by many airlines around the world anymore, just because of the rising costs of operating these aircraft.”
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The airline had recently expanded its fleet to 15 aircraft and launched new operations from its base in Teesside and at Cardiff, employing more than 200 staff.
The total number of job losses has not been confirmed.
European Cargo had previously described Bournemouth as a cost-effective alternative to other UK airports.
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