Lynx Air announced on February 22 that it will cease operations on Monday, February 25 at 0:01 a.m., amid rumors of a merger with another Canadian airline.
The company stated that it had applied for and obtained an initial creditor protection order from the Alberta King’s Court under the Companies’ Creditors Arrangement Act («CCAA»).
Lynx mentioned in a statement that the challenges it faces have become «too significant» to overcome.
«Over the past year, Lynx Air faced a number of significant obstacles, including rising operating costs, high fuel prices, exchange rates, increased airport charges and a difficult economic and regulatory environment,» the company stated.
«Every effort is being made to help passengers at this time. Passengers with existing reservations are advised to contact their credit card company for refunds for pre-booked travel,» the airline said.
One of the recent rumors is negotiations with Flair Airlines for an impending merger, in which Flair would absorb all of Lynx Air’s assets.
A small low-cost carrier with aspirations of grandeur
Lynx, operating as an ultra-low-cost carrier, launched its inaugural flight in April 2022, with a fleet consisting of nine Boeing 737 MAX 8s and orders for 46 additional aircraft, doubling its passenger volume over the past two years.
However, despite substantial business growth, continued operational improvements, cost reductions and efforts to explore a sale or merger, the challenges facing the company have become too significant to overcome.
The airline is owned by Indigo Partners, which also invests in Frontier, JetSMART, Volaris and Wizz Air.
