‍DALLAS – Air Belgium (KF) will discontinue its passenger business, which has struggled with profitability, despite efforts to strengthen its passenger operations.

The carrier has stated via a press release that investments and commercial initiatives have not helped, as increasing competition and high operating costs have rendered this segment unviable. 

The carrier’s Board of Directors has therefore announced a strategic shift in its operations, focusing solely on its profitable cargo and ACMI (Aircraft, Crew, Maintenance, and Insurance) business-to-business services. 

This decision also comes in response to financial difficulties triggered by external factors such as COVID-19, the war in Ukraine, rising fuel prices, inflation, and reduced consumer purchasing power.

To address financial difficulties, KF has filed for judicial reorganization—similar to Chapter 11 bankruptcy in the U.S.— through an amicable agreement. This will allow them to negotiate better terms with creditors and reduce debt. 

The reorganization will not affect the legal entity, and KF aims to ensure long-term viability by concentrating on cargo and ACMI services.

Passenger flights scheduled before October 3, 2023 will proceed, and refunds will be offered for cancellations thereafter. The airline says employees from the passenger division will be reassigned to other operations, ensuring continuity during the reorganization.

Air Belgium apologized to its customers for the sudden discontinuation of passenger services and said it remained committed to strengthening its profitable cargo and ACMI operations in the future.