Ben Mutzabaugh

USA TODAY

Air Canada is suspending its flights to Venezuela amid the civil unrest and political instability that has rocked the South American nation in recent months.

"Due to on-going civil unrest in Venezuela, Air Canada can no longer ensure the safety of its operation and has suspended flights to Caracas until further notice," the carrier says in a statement posted on its website."

Yet while Air Canada cited safety, many industry observers also suspect a growing financial dispute between airlines and the Venezuelan government is at least as much to blame.

The Globe and Mail of Toronto writes that citing safety only "hints at what may be the more accurate explanation." The newspaper notes Air Canada also says "onerous currency restrictions imposed on all airlines preventing them from recovering their funds from Venezuela" and are making it difficult to do business in Venezuela.

Regardless of the precise reason, Air Canada says its last flight from Caracas operated on Sunday (March 16) and that it is unsure when service might resume — perhaps because Venezuela may not let it.

"Air Canada will continue to monitor the situation and will evaluate the re-introduction of flights with the objective of resuming operations on the route once Air Canada is satisfied that the situation in Venezuela has stabilized," the carrier says in its statement.

Air Canada had been operating three weekly flights between its hub in Toronto and Venezuela's capital of Caracas. The airline says customers for future tickets can request a refund.

The Associated Press notes Venezuela "has been roiled by daily street protests over crime and a deteriorating economy for more than a month." Additionally, foreign airlines have struggled under a $3.3 billion debt owed by the Venezuelan government," AP adds.

Air Canada's move comes despite a warning last week from Venezuela President Nicolas Maduro, who threatened that any carrier to reduce or suspend service to Venezuela would face "severe measures," according to the BBC. Maduro also suggested any airline that halts service would not be allowed to resume flights as long as he remains in office.

"The company that leaves the country will not return while we hold power," he's quoted as saying by the Financial Times.

Indeed, Reuters says in a Tuesday report that Venezuela has decided to "end commercial relations" with Air Canada.

Even before Air Canada's suspension of service, Venezuela's president already had drawn a sharp rebuke over the government's dealings with foreign airlines.

Tony Tyler, CEO of the International Air Transport Association (IATA) trade group, rapped the nation's leader on March 12 on charges that the Venezuelan government is blocking foreign carriers from repatriating around $3.7 billion in earnings, CNN reports.

Airlines say they've not been able to access money from ticket sales because of Venezuela's tight currency controls.

Ecuador's Tame airline briefly suspended its flights to Venezuela in January over a related payment dispute.

"It is unacceptable that the Venezuelan government is not playing by the rules to which it is treaty bound," Tyler, is quoted saying by CNN in his March 12 speech. "Airlines certainly cannot sustain operations indefinitely if they can't get paid. I have written to President Maduro asking for his urgent attention to this issue."