Lynx Air’s financial struggles lead to suspension of operations – Travel And Tour World

Lynx Air (Lynx), a budget airline serving destinations across Canada, the U.S., and Mexico, has announced its application for creditor protection under the Companies’ Creditors Arrangement Act (“CCAA”), which has been approved by the Court of King’s Bench of Alberta.

In the past year, Lynx Air has encountered significant challenges such as escalating operating expenses, high fuel costs, fluctuating exchange rates, increased airport fees, and a challenging economic and regulatory landscape.

As an ultra-low-cost carrier, Lynx commenced operations in April 2022, experiencing growth in its fleet, destinations, and passenger numbers over the past two years. Despite efforts to enhance operations, reduce costs, and explore strategic options like a sale or merger, the company has found the obstacles too formidable to overcome.

In light of these circumstances, Lynx Air has decided to suspend operations effective 12:01 a.m. MT on Monday, February 26, 2024, with flights continuing until that time.

Efforts are underway to support affected passengers, who are encouraged to contact their credit card providers for refunds on pre-booked travel.

Lynx expresses heartfelt appreciation to its loyal customers, dedicated staff, and business partners for their unwavering support and commitment.

Legal counsel for Lynx Air is provided by Osler, Hoskin & Harcourt LLP, while FTI Consulting Canada Inc. serves as the CCAA Monitor.

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