Alberta-based ultra-low-cost airline Lynx Air has been forced to protect itself from its creditors and will operate its final flights on Sunday, a little less than two years after launching in the country.
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The airline, which wanted to revolutionize air travel in Canada by offering flights at unbeatable prices, was ultimately defeated by rising operating costs.
In a statement released Thursday evening, the company attributed its setbacks to “high fuel prices, the exchange rate, rising airport fees and a difficult economic and regulatory environment.”
“It is with a heavy heart that we announce the departure of Lynx Air from the skies,” the company commented on its social networks.
This announcement may come as a surprise, as at first glance the company seemed to be driven by a fair wind. She posted openings on her social media as recently as Wednesday and had just taken an inaugural flight to Cancun, Mexico, last week.
“However, despite significant business growth, improvements to our operations, our operating cost reductions and our efforts to complete a sale or merger, the challenges had become too difficult to overcome,” Lynx explained, hinting at discussions for a possible merger with another low-cost airline, Flair Airlines.
Passengers with uncertain fate
The fate of Lynx customers remained uncertain Thursday evening. The company has told its customers who have booked a flight that they can contact their credit card company for a refund.
A company spokesperson added in a statement sent to the QMI agency that Lynx is “working with passengers currently in transit to find alternatives to help them reach their destination.”
Customers with questions are welcome to visit the Frequently Asked Questions section of the Lynx website.
“I am closely following Lynx Air's application for restructuring under the Companies' Creditors Arrangement Act,” Federal Transport Minister Pablo Rodriguez commented in minutes after the deal was announced.
“For all travelers who had planned a return flight with Lynx Air, I expect Lynx to get you home as quickly as possible. I also expect Lynx to provide a full refund if your reservation is not honored,” he added.
Lynx Air regularly announces a small fleet of brand new Boeing 737s