Lynx Air announces it is ceasing operations
Citing financial pressures, Calgary-based low-cost airline Lynx Air has announced it will be ceasing operations on Monday.
In a memo to staff on Thursday, COO Jim Sullivan revealed the airline has successfully filed for creditor protection from the Court of King’s Bench of Alberta under the Companies’ Creditors Arrangement Act.
In the memo, Sullivan said compounding financial pressures brought on by high inflation, fuel, capital and regulatory costs, coupled with adverse exchange rates and “competitive tension in the Canadian market” ultimately proved too steep of a mountain for the Calgary company to overcome.
Lynx Air offered flights into and out of Atlantic Canada and had recently announced plans to expand service for the region in April.
“I know this is a terrible shock for many of you and this was not how our story was intended to play out,” Sullivan wrote in the memo.
“While we did our best, the pressures mounted and the risks increased, which has led to today’s announcement.”
First announced in Calgary in November of 2021 , Lynx Air was heralded as an ultralow-cost alternative to larger airlines, with the mission “to make air travel accessible to all Canadians.”
Launching its first flight in April 2022, the low-cost carrier grew quickly, building up its network to service destinations across Canada, the U.S. and Mexico.
Sullivan’s memo claimed the airline’s number of passengers nearly doubled in the last two years, reaching close to two million.
“However, despite substantial growth in the business, ongoing operational improvements, cost reductions and efforts to explore a sale or merger, the challenges facing the company’s business have become too significant to overcome,” a press release stated.
Lynx Air said its flights will continue to operate as per usual until Sunday night, with operations to cease as of 12:01 a.m. on Monday.
Passengers with existing bookings with Lynx Air were advised to contact their credit card company to secure refunds. Toronto TV station CP24 said the airline told customers its contact centre will not be available to assist with refunds.
“Our passengers are our priority, and to ensure we bring as many of our travellers home as possible,” the airline said, noting that if a flight is cancelled, travellers will be notified via e-mail.
On a Nova Scotia-based Facebook site, posters who have a flight booked with Lynx were looking for advice.
One woman said she booked a round trip through Flighthub, departing from Halifax and returning via Lynx, wondering how she could get a refund for the Lynx portion of her trip, while not jeopardizing the other leg.
Another wrote looking for input on what might seem like a drastic alternative, asking how safe it is to drive from Halifax to Toronto in the winter for someone who’d be driving long distance for the first time.
Lynx Air said if a flight is scheduled after Feb. 26, travellers will receive a flight cancellation notification, reiterating that they could get a refund through their credit card company.
“If you would like to move to a flight this weekend, reach out to our contact centre and they will do their best to assist you,” the airline said, per CP24.
Lynx says travel vouchers and flight vouchers will no longer be accepted once operations cease.
Westjet said it will offer a 25 per cent discount on all economy cabin fares on nonstop Westjet routes previously served by Lynx Air, for travel between Feb. 22 and Oct. 26.
Westjet also said domestic fares on non-stop Westjet routes previously served by Lynx for travel up until Feb. 29 will not exceed $500 plus taxes and fees.
“We are communicating closely with government officials and supporting agencies that are also working to address the needs of those impacted,” Westjet said in a release.