Calgary-Based Low-Cost Airline Lynx Air Ceases Operations Amid Financial Pressures

Calgary-based low-cost airline Lynx Air has announced its decision to cease all operations, citing financial pressures that have made it unsustainable to continue flying. This decision, revealed in a memo to staff by the company’s COO Jim Sullivan, comes as Lynx Air also disclosed its filing for creditor protection under the Companies’ Creditors Arrangement Act from the Court of King’s Bench of Alberta.

Lynx Air, launched in April 2022, quickly gained recognition in the aviation industry as an ultra-low-cost carrier offering affordable travel options for Canadians. However, the airline faced mounting challenges including high inflation, escalating fuel and regulatory costs, adverse exchange rates, and intensified competition in the Canadian market.

Despite almost doubling its passenger numbers in the last two years and expanding its routes to various destinations in Canada, the U.S., and Mexico, the financial strains on Lynx Air became insurmountable. Sullivan expressed regret in the memo, acknowledging the abrupt end to the company’s journey that was not anticipated.

The news of Lynx Air’s closure will become effective at 12:01 a.m. on Monday, with flights set to operate until that time. Passengers who have bookings with the airline are advised to seek refunds from their credit card companies for any pre-booked travel. Details and additional assistance for customers can be found on the company’s website.

Lynx Air’s legal advisors, Osler, Hoskin & Harcourt LLP, oversaw the process of filing for creditor protection, while FTI Consulting Canada Inc. was appointed as the monitor under the Companies’ Creditors Arrangement Act. The Canadian Union of Public Employees (CUPE), representing flight attendants, and employees from various airlines, had members impacted by the airline’s sudden closure.

Transport Minister Pablo Rodriguez responded to the news on social media, ensuring that all affected passengers are a priority and emphasizing the need for refunds and support for those stranded by Lynx Air’s shutdown. Rodriguez pledged to work with other airlines to assist passengers and ensure their timely return to their destinations.