Canadians are about to again have fewer options when it comes to air travel.
Lynx Air, a Calgary-based low cost airline, has filed for creditor protection under the Companies Creditors Arrangement Act with the Court of King’s Bench of Alberta. The company at the same time has indicated that it will cease operations as of 12:01 AM on Monday, February 26.
The filing comes less than two years after the company launched its first flight in April 2022. In making the filing, Lynx indicated it faced headwinds that include rising operating costs, high fuel prices, growing airport charges, and a difficult economic and regulatory environment.
Court filings indicate that the airline was operating a fleet of nine Boeing 737 Max 8’s, and at the time of filing had in excess of $5.0 million in claims against it. An interim loan facility in the amount of $1.0 million has been advanced by Indigo Northern Ventures, which has been made available as part of the proceedings.
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In terms of refunds, the airline has suggested that passengers with existing bookings should contact their credit card company to secure refunds for pre-booked travel.
Filings related to the creditor protection application can be found here.
Information for this story was found via FTI and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
