Peruvian Airlines has suspended all flights “until further notice,” after its bank accounts were frozen by Peruvian customs authorities following liquidity issues.

Peru’s second-largest carrier has released a statement on its website explaining that its accounts were embargoed as a penalty for underpaying taxes on two Boeing 737 MAX aircraft it received.

The airline went on to say that the embargo resulted in distrust with the travel agencies and significantly lowered their sales, further affecting the cash flow of the company.

The Lima-based carrier said it could not recover from the financial hit, putting them in the “unfortunate situation” of having to suspend all flights until further notice.

The carrier has, however, not given up hope, with the statement going on to say that the airline was making efforts with new investors in an attempt to refloat the company.

The statement said the airline wanted to “continue providing the important service that Peruvian represents for national aviation as it is the only Peruvian company that operates in the skies of Peru for more than 10 years.”

According to a report from America TV passengers were left stranded at Jorge Chavez International Airport in Lima last week without any clear communication as to what was going on.

Lima-Airport

Reports say none of the staff in Peruvian Airlines’ offices were able to give any reasons for the suspension.

Peruvian Airlines was operating a fleet of 11 Boeing 737 family aircraft serving 11 domestic destinations in Peru from a main hub at Lima’s Jorge Chavez Airport.