The financial and labour situation at the Mexican national carrier is "no longer sustainable" according to a statement on its website, leading the airline to cancel flights.
The airline said that despite of investments of more than US$300 million and savings of some US$800 million, Mexicana has been unable to offset its crew costs.
It has cancelled a number of flights to Pamana City and Orlando from Mexico City.
Mexicana said the "non-competitive crew labour costs" were the main reason the company has continued to suffer losses, "to the extent that it is now financially non-viable".
It has registered losses of US$350 million from 2007 to date.
The airline said its pilots earn 49% more than the average wage paid by legacy airlines in the United States and 185% more than the average pilots flying Airbus A320s for other Mexican low cost airlines like Volaris or Interjet.
It also said its flight attendants earn 32% more than the U.S. average and 165% more than their Mexican counterparts.
Mexicana has presented its pilots and cabin crew with two alternatives.
Option one is "to enter into a new collective contract", which would mean accepting cuts of 41% and 39% in wages and fringe benefits for pilots and flight attendants, respectively. The number of pilots and flight attendants would also be cut by 40%.
Option two is for stockholders to sell the airline to its unions for the "token sum of $1 peso".