UPDATE: At 8:00 p.m. on 22FEB, Lynx issued the following statement:
"Over the past year, Lynx Air, has faced a number of significant headwinds including rising operating costs, high fuel prices, exchange rates, increasing airport charges and a difficult economic and regulatory environment.
"Operating as an ultra low-cost carrier, Lynx launched its inaugural flight in April 2022, growing its fleet and number of destinations while doubling its volume of passengers over the past two years. 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.
"In connection with the commencement of proceedings, Lynx Air has made the decision to cease operations effective 12:01 a.m. MT on Monday, February 26, 2024, with flights continuing to operate until that time.
"Every effort is being made to assist passengers at this time. Passengers with existing bookings are advised to contact their credit card company to secure refunds for pre-booked travel. Additional information for Lynx customers is available at this Frequently Asked Questions page.
"Lynx would like to extend sincere gratitude to its loyal customers, dedicated employees and business partners for their commitment and dedication to the company."
An internal Lynx Air memo has been issued to staff advising that the carrier will cease operations as of 26FEB.
The message, signed by Jim (Lynx's COO, Jim Sullivan), states that Lynx was unable to secure investment, and as a result, on 22FEB, it filed for protection from its creditors under a CCAA filing.
"While we did our best, the pressures mounted and the risks increased, which has led to today's announcement."
Earlier this month, published reports said Flair and Lynx were talking about a merger that would drastically alter the Canadian aviation landscape and solidify each carrier’s survival chances.
According to inside track publication, The Airline Observer, “Flair, an airline part-owned by Miami private equity firm 777 Partners, would absorb Lynx, which is backed by Canadian investors and Bill Franke's Indigo Partners, according to the sources. But neither side appears to be confirming the potential merger.
Experts have been saying for months that Canada would likely lose an airline at some point, given the growth of airlines such as Flair, Lynx and Canada Jetlines, not to mention the dramatic expansion by Porter Airlines.
This story is ongoing. Stay tuned for more information.
