DALLAS — Australian regional budget airline Bonza (AB) has abruptly canceled flights across the country, leaving potentially thousands of passengers stranded, as it evaluates the future viability of its business.

Last week, Bonza confirmed flights on some routes would decrease in the month of May but denied allegations it was struggling financially. Today, the airline's CEO, Tim Jordan, announced the temporary suspension of all services and expressed that discussions are ongoing regarding the airline's continued viability.

The suspension has caused significant inconvenience and confusion for affected passengers, with reports of multiple flight cancellations and rescheduling notifications.

The Sunshine Coast-headquartered LCC has faced criticism for its financial position and previous flight cancellations. Now, the discount regional airline has appointed a voluntary administrator to manage its operations after its aircraft provider repossessed its planes in Australia.

This unexpected repossession was carried out by a former investment partner of Bonza's private equity owner, 777 Partners. The grounded planes, which are registered to AB, are currently located at the Sunshine Coast, Melbourne, and the Gold Coast.

At the time of writing, the airline has not provided specific details about the recent cancellations or offer guidance to affected customers. The situation has prompted responses from government officials, with efforts to assist stranded passengers and concerns raised about the impact on regional tourism.

The news comes as industry experts have commented on the challenges faced by budget carriers in regional Australia, emphasizing the difficulties of maintaining profitability with lower passenger numbers and long distances within the world's smallest continent.

This is a developing story.