Ultra low-cost carrier Lynx Air will be ceasing operations after obtaining creditor protection under the Companies’ Creditors Arrangement Act, the company said late this week. The Calgary-based airline said operations will halt effective 12:01 a.m. MT on Monday, with flights continuing to operate until that time. The Financial Post’s Denise Paglinawan and Shantaé Campbell explain what that means for customers who are currently travelling and those who have booked tickets for future flights.

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Why is Lynx going under?

The company, which launched its inaugural flight in April 2022, said it has faced challenges over the past two years that “have become too significant to overcome.” These headwinds include rising operating costs, higher fuel prices, exchange rates, increasing airport charges and a difficult economic and regulatory environment, Lynx said. “Thank you for supporting us in our journey, we are as disappointed as you are,” the company said on its website. “We know this is a shock to many and our goal is to make the wind down of our operations as seamless as possible.”

What should stranded passengers do?

Passengers scheduled to fly home after the end of operations are told they will receive a flight cancellation notification and can get a refund for the flight through their credit card company. But it appears it will be up to them to make alternative arrangements. The airline has not indicated how many passengers are currently travelling, but Lynx Air routes include destinations in Canada, the United States and Mexico, where it just launched service on Feb. 15. Its website lists 23 total destinations, including most major Canadian cities and U.S. locations such as Phoenix, San Francisco and Tampa Bay. According to aviation analytics company Cirium, Lynx has a total of 731 flights scheduled for February 2024.

What are other airlines doing to help?

In a statement Feb. 23, Air Canada said it will cap fares and add more than 6,000 seats in select markets operated by Lynx for purchase before Feb. 26 and travel before April 2. It won’t, however, be able to honour Lynx Air tickets. It said it also plans to add incremental capacity of more than 6,000 seats on Lynx routes from Toronto and Montreal to Cancun, Fort Myers, Orlando, Tampa, Phoenix and Las Vegas between Feb. 25 and March 19.

WestJet Group, which acquired Sunwing Airlines and eliminated its own low-cost carrier, Swoop Airlines, last year, said it would be offering discounted fares on non-stop WestJet routes previously served by Lynx. These include certain domestic routes such as Edmonton-Toronto and Montreal-Vancouver, some flights originating from the U.S., as well as flights from Cancun to Toronto.

Earlier, federal transport minister Pablo Rodriguez had said his office has been in touch with Lynx and had convened calls with other airlines to see how they can help affected passengers.

Who pays for extra costs if you get stranded?

The announcement does not directly address additional charges related to extending accommodation due to flight cancellations or delays. However, typically in such situations, passengers are responsible for their own additional expenses unless otherwise stated by the airline. Given Lynx Air’s entry into CCAA proceedings, it seems unlikely they will cover costs for extended stays.

What if you have a flight booked in the future?

Lynx Air is directing passengers with existing bookings to contact their credit-card companies to refund pre-booked travel. But getting those refunds may not be an immediate process. A voice message for those calling CIBC’s credit-card department said it was experiencing a high volume of calls, and addressed the Lynx Air situation directly. “If you’re calling with respect to a Lynx Air flight purchase on your CIBC credit card, please be aware that we are only able to submit a transaction dispute with the credit card network once the date of your unfulfilled flight has passed,” the recording said. “As soon as that occurs, you can submit your dispute through CIBC online or mobile banking, or call us back.”

Lynx Air is advising passengers and affected parties to check Lynx Air’s FAQ page, to contact their credit-card providers, or follow FTI Consulting Canada Inc., the appointed CCAA Monitor, for the latest and most accurate information.

• Email: shcampbell@postmedia.com

• Email: dpaglinawan@postmedia.com

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