Alas Uruguay (YZ, Montevideo) has suspended all operations following its last scheduled commercial flight, YZ163 - Buenos Aires Aeroparque- Montevideo, on Monday, October 24.

The route was operated by the carrier's last remaining operational B737-300, CX-OAC (msn 28563) which is leased from Cara Aircraft Leasing. Flightradar24 ADS-B data indicates sistership CX-OAA (msn 28569), which is leased from Aergo Capital, has not operated any commercial flights since October 19.

Alas Uruguay has since formally requested the Uruguayan civil aviation authority (DINACIA) to suspend its operations for up to sixty days.

Lamenting the carrier's difficulties, Uruguay's Minister of Tourism, Liliam Kechichián, told El Espectador newspaper that there was "no more room for financial support" for the airline from government adding that "they long ago made that very clear."

Launched in January of this year, Alas Uruguay was a project centred around ex-PLUNA (PU, Montevideo) personnel using a Uruguayan government national development fund (FONDES) loan of USD15 million. However, despite initial optimism, it soon ran into difficulties attracting lower than expected loads on its flights to Argentina and Paraguay. With less than expected revenue, the airline struggled to finance its debts.

In July, ALAS Uruguay's management was reported to have held talks with Brazil's Azul Linhas Aéreas Brasileiras (AD, Sao Paulo Viracopos) and Amaszonas (Z8, La Paz El Alto), parent firm to rival Amaszonas Uruguay (Z7, Montevideo), over a possible cooperation agreement though nothing tangible is said to have come of them.