Saudi Arabia’s budget carrier, Sama Airlines, has announced cancellation of flights from Tuesday onwards, owing to financial constraints.

The airline said it is seeking fresh cash injections from investors, before resuming normal flight operations. “Sama Airlines would discontinue all flight operations as of today, August 24, 2010,” said a statement released by the airline. “We’ve spent many months seeking alternatives, and now this is the only option remaining to us,” Sama CEO Bruce Ashby said.

“We had been awaiting a significant aviation relief package with respect to fuel subsidies, subsidies for PSO routes, a gradual lifting of domestic fare caps and additional funds to support the past losses and growth of our business.

“In addition, we sought, and found, more than one potential new equity investor willing to inject cash into the business. Unfortunately, none of these alternatives came together in the required timeframe,” Ashby added.

Sama is seeking arrangements to accommodate passengers affected by flight cancellations through other airlines. The airline said it would notify all passengers booked on flights from August 24 onwards.