Canadian start-up carrier Lynx Air is ceasing operations on 26 February, citing financial pressure in the highly competitive low-cost segment.
Lynx, which has filed for creditor protection in Canada, says that it will operate “most” of its flights through the weekend. It directs customers booked beyond its final day of operations to seek flight refunds through their credit card companies.
“Compounding financial pressures associated with inflation, fuel costs, exchange rates, cost of capital, regulatory costs and competitive tension in the Canadian market have ultimately proven too steep a mountain for our organisation to overcome,” Lynx says on its website.
The unexpected news comes days after rumours spread of a potential merger between Lynx and more well-established Canadian ULCC Flair Airlines.
“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,” the airline says.
Calgary-headquartered Lynx launched in April 2022 with a small fleet of Boeing 737 Max flying to destinations including Calgary, Kelowna, Toronto, Vancouver, Victoria and Winnipeg. The carrier later expanded operations to include trans-border flights to popular vacation destinations in the USA.
Cirium fleets data show that Lynx is currently operating nine 737 Max.
Founding chief executive Merren McArthur left the company in September 2023, about two years into the start-up’s five-year plan, citing personal reasons.
“We are as disappointed as you are,” Lynx says. “We are thankful for the loyalty of our passengers who valued our ultra low-cost carrier model. We know this is a shock to many and our goal is to make the wind down of our operations as seamless as possible.”
In response to the start-up’s collapse, fellow Calgary-based carrier WestJet is offering a 25% discount for economy fares on routes previously served by Lynx from 22 February to 26 October.
”We recognise the immediate impact this information has on passengers and employees of Lynx, and we are committed to assisting where we can,” WestJet says. ”We are communicating closely with government officials and supporting agencies that are also working to address the needs of those impacted.”
