Romanian low-cost air carrier Blue Air has announced the suspension of all flights out of Romania until September 12 after the environment ministry blocked its bank accounts for failing to pay a fine, making payments to suppliers impossible.

Blue Air, which entered a debt restructuring agreement in 2020 due to losses incurred during the COVID-19 pandemic, made the announcement on Tuesday. The airline operates flights out of Bucharest and the cities of Bacau, Cluj and Iasi.

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In July, the national consumer protection authority (ANPC) fined the company 2 million euros ($1.98m) for cancelling more than 11,000 flights during April 2021-April 2022.

The company said it would challenge the fine.