Peruvian Airlines has become the latest carrier casualty as it announced that it would be suspending all of its flights.
In a statement posted on its website, and translated from Spanish, the carrier blamed an embargo carried out by the Customs of Peru.
The statement said: "Due to the valuation difference in the temporary importation of two commercial aircraft since the Temporary Admission Law did not exist in the country, the coercive action occurred that resulted in the lack of liquidity that affected our operations."
The airline cited its recent abandoning of operations for half a day on 30 September, due to an issue onset by troubles the airline had faced earlier in the week, regarding the local authorities.
"This embargo that generated the paralysis of our flights for half a day, created a distrust," Peruvian Airlines said in its statement. "With the travel agencies that significantly lowered their sales, affecting, even more, the cash flows of the company not allowing its operation, a situation from which we could not recover, so we are in the unfortunate situation of having to suspend all our flights until further notice."
The airline has said it is now seeking new investors in order to "refloat' the company but as has been known in the past, this can take time.
Peruvian becomes the latest airline casualty following France's Aigle Azur, Thomas Cook in the UK and Slovenia's Adria Airways' collapse.