Lynx Air to cease operations Monday after filing for creditor protection

Canadian budget airline Lynx Air is shutting down less than two years after it launched.

The airline announced Thursday that it will cease operations effective 12:01 a.m. on Monday.

“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,” Lynx Air said in a news release.

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The Calgary-based airline also announced that it filed and obtained an initial order for creditor protection from an Alberta court.

Lynx Air, formerly known as Enerjet, said the challenges it was facing had become “too significant to overcome” despite substantial growth, operation improvements, cost reductions and efforts to explore a sale or merger.

“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,” the airline said.

Lynx Air’s inaugural flight launched in April 2022. It operates nine Boeing 737 MAX 8 aircraft to 18 destinations – 11 in Canada, six in the United States and one in Mexico.

According to the airline’s website, travellers with flights booked on or after Monday should contact their credit card company for a refund. Lynx Air noted that its contact centre will not be available to assist with refunds.

Federal transport minister Pablo Rodriguez posted a statement on X, saying that he was closely following the airline’s announcement.

“I’m thinking of the Canadian travellers and workers affected by this news, their families, and the communities across Canada who will feel the impact of this,” the minister said, adding that he expects Lynx to help its customers who had incoming flights to get them back home as soon as possible and offer a refund if the fare isn’t honoured.

“My office has been in touch with Lynx, we will continue to communicate with all parties, and we’ve convened calls with other airlines to see how they can help, to ensure the passengers are put first.”