Lynx Air Halts Operations Amid Rising Costs and Intense Competition

Canadian startup Lynx Air is set to cease operations on 26 February, succumbing to the financial challenges prevalent in the competitive low-cost airline market. The airline, having sought creditor protection in Canada, plans to continue operating most of its flights until the cessation date, advising customers with bookings beyond this period to pursue refunds via their credit card providers.

Lynx Air's announcement comes amidst speculations of a potential merger with Flair Airlines, another prominent player in Canada's ultra-low-cost carrier (ULCC) space. Despite efforts to sustain growth, achieve operational efficiencies, and explore strategic alternatives including sale or merger, the airline has been overwhelmed by a combination of inflation, soaring fuel prices, adverse exchange rates, capital costs, regulatory expenses, and the pressure of competition.

Launching in April 2022, Lynx Air embarked on its journey with a modest fleet of Boeing 737 Max aircraft, initially serving key Canadian cities such as Calgary, Kelowna, Toronto, Vancouver, Victoria, and Winnipeg. The airline's ambition saw it extend its wings to include trans-border services to sought-after U.S. destinations.

Currently, Lynx operates nine 737 Max aircraft, as per Cirium fleets data. The airline's founding CEO, Merren McArthur, departed in September 2023, leaving the company mid-way through its five-year strategic plan due to personal reasons.

Lynx Air expressed its disappointment and gratitude towards its patrons for their support of the ULCC model, acknowledging the abruptness of its closure.

"We know this is a shock to many, and our goal is to ensure the cessation of our operations is as smooth as possible,"

the airline stated.

In light of Lynx's closure, WestJet, another Calgary-based airline, has stepped forward with a 25% discount on economy fares for routes formerly operated by Lynx, valid from 22 February to 26 October, as a gesture of support for affected passengers and employees. WestJet emphasized its commitment to assisting those impacted by Lynx Air's shutdown, working in coordination with government and relevant agencies to facilitate the transition.