Lynx Air to cease operations on Monday

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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.

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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.

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“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 ultra-low-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.

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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 flights will continue to operate as per usual until Sunday night, according to a press release. Operations will cease as of 12:01 a.m. on Monday.

Passengers with existing bookings with Lynx Air are advised to contact their credit card company to secure refunds. Additional information for Lynx customers is available here).

More to come…

Lynx plane at YYC
A Lynx Air Boeing 737 on the tarmac at the Calgary International Airport on April 7, 2022. Jim Wells/Postmedia

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