Red Way, a startup airline based in Lincoln, Nebraska, the United States (US), has announced that it will cease operations and will no longer operate flights from August 31, 2023.
The decision was made “with a heavy heart,” the airline said in an announcement.
“Over our short time operating, we have had the immense privilege of serving our customers and connecting people across the US. We are immensely grateful to have had this time, and we know that demand exists strongly in Lincoln for expanded air service,” the announcement continued.
The airline cited “insurmountable challenges as a small startup in our industry, and the compounding of costs and lack of resources”, which made it impossible for Red Way to sustain operations.
“It is our hope that other carriers see the incredible potential, and with their economies of scale, are able to provide Lincoln with the service it is so worthy of,” the airline added.
While it will continue operating flights until August 31, 2023, passengers booked to travel with the airline following that date will receive refunds, which will be done automatically.
“Our deepest gratitude is extended to our employees, partners, customers and the community for their support throughout this journey,” Red Way concluded.
The carrier started flying in June 2023, wet leasing aircraft from Global Crossing Airlines, a Miami, US-based charter and Aircraft, Crew, Maintenance, and Insurance (ACMI) operator.
Its destinations included Dallas, Las Vegas, Nashville, Orlando, Pheonix, and Tampa, with the airline leasing a single Airbus A320 to fly to these destinations out of Lincoln Airport (LNK).
The only other airline to offer flights to LNK was United Airlines, operating flights with a range of regional and narrow-body aircraft.
Meanwhile, Global Crossing Airlines ended Q2 2023 with operating revenues of $31.5 million and a net loss of $7.4 million. Going forward, the ACMI operator expected to operate more than 6,000 block hours in Q3 2023, increasing its revenues by 54% by the end of the year to $150 million.
