Lynx Air Ceases Operation
Location: National
Issue/Source: Ceased operations of a Canadian Airline / TRAN
Date: March 2024
Suggested Responses
- Lynx Air announced on February 22, 2024, that it was obtaining creditor protection under the Companies’ Creditors Arrangement Act and ceasing operations shortly. The loss of Lynx Air is regrettable for the air industry and those affected.
- The Government of Canada took action immediately by approaching other Canadian airlines to assist the affected passengers to return home, both within Canada and abroad, through existing or additional services.
- Transport Canada thanks Air Canada, Transat, WestJet and Flair for supporting these efforts.
- Understanding the importance of competition in the air sector for Canadians that rely on air services to conduct business, stay connected with friends and family and more, we are committed to promoting a healthy and competitive air sector that is safe and provides quality services to Canadians.
If Pressed
- We recognize that compounding financial pressures proved too steep for Lynx Air to overcome, and ultimately led the private entity to make the business decision to file for creditor protection and cease operations.
If Pressed on Merger with Flair
- Transport Canada did not receive any formal notification under the Canada Transportation Act from either airline about a potential merger. Had one been received, the department would have assessed the proposal in accordance to the legislation.
If Pressed on Future for Ultra Low-Cost Carriers
- Canada’s air travel market has witnessed significant growth and an increase in competitiveness over the past decade, with new entrants including ultra-low-cost carriers Flair and Canada Jetlines, as well as a recent expansion in domestic service by Porter.
- As the Canadian air transport market continues to evolve, we expect other carriers will continue to grow their services and new entrants to emerge.
If Pressed on Flair’s Financial Challenges
- As a privately held company, Flair is not required to disclose its financial results, and at this time and to our knowledge, Flair’s operations continue.
If Pressed on Government Awareness of Financial Difficulties
- As a privately held company, Lynx Air was not required to disclose its financial results prior to the announcement.
If Pressed on Refunds for passengers and air travel complaints
- We recommend that passengers continue to monitor statements issued by Lynx Air regarding refunds. Additionally, the Canadian Transportation Agency posted guidance for affected travellers regarding the filing of complaints, and seeking refunds through credit cards, provincial government authorities and insurance providers.
Background Information
- Lynx Air began operation in April 2022. Prior to ceasing operations, Lynx Air operated 9 leased aircrafts, and flew to 11 Canadian destinations, 6 cities in the United States and 1 in Mexico. Lynx Air held approximately 2% of domestic market share and less than 1% of international market share. The company had 500 employees including 160 pilots.
- On February 22, 2024, Lynx Air announced that the company had filed for court protection from creditors and will cease operations on 12:01 AM, MT on February 26, 2024. Air Canada added 6000 seats on some overlap routes, Flair added extra flights, and WestJet and Transat provided promotions on services such as discounts or capping of fares, to support stranded passengers of Lynx.
- Lynx cited compounding financial pressures associated with inflation, fuel costs, exchange rates, cost of capital, regulatory costs and competitive tension in the Canadian market as reasons for their decision to cease operations.
- Through court documents we have learned that Lynx Air owes $25.6 M in taxes to the Government, another $47.8 M to other creditors, and had defaulted on payments of $7 M in February 2024 to various entities such as Toronto Airport, Montreal Airport, Delta Airlines and more.