Lynx Air to cease operations Monday, files for creditor protection

globalnews.ca:

Lynx Air says its final flights will take place on Sunday as the company files for creditor protection, less than two years after the low-cost airline took to the skies.

The Calgary-based company announced in a news release on Thursday it has sought and obtained an initial order of protection from creditors from the Court of King’s Bench of Alberta, under the Companies’ Creditors Arrangement Act.

As of 12:01 a.m. MT on Monday, Feb. 26, Lynx Air says its operations will cease, with scheduled flights continuing to operate until that time.

The company says it has faced “significant headwinds” in the past year, including rising operating costs, high fuel prices, exchange rates, increasing airport charges and a difficult economic and regulatory environment.

In the release, the company touts that it has grown its fleet and number of destinations while doubling its passenger volume in the past two years. Despite that growth, and efforts to explore a sale or merger, Lynx Air said the challenges facing the company’s business “have become too significant to overcome.”

“This is a difficult day for everyone at Lynx Air and we recognize it’s an exceptionally difficult day for our loyal customers,” a spokesperson for Lynx said in a statement to Global News.

The company added that efforts are being made to assist passengers affected by the move, with those who have existing bookings advised to contact their credit card company to secure refunds for pre-booked travel.

The Canadian Transportation Agency (CTA) has published guidance for Lynx Air passengers, including contact information for government agencies in Ontario, Quebec and British Columbia that can help secure refunds from travel agencies registered in those provinces.

The CTA