Lynx Air seeks creditor protection, will stop flying after Sunday

Lynx Air leaves the skies

If you have travel plans that include Lynx Air in the next few weeks you might want to reach out to the airline.

Castanet has spoken to a Lynx employee who indicates the airline will cease operations as of 12:01 a.m. MT on Monday, Feb. 26.

An internal Lynx Air memo was sent to Lynx Air staff on Thursday by airline COO Jim Sullivan.

"Over the next three days we will continue to deliver a great travel experience to our customers, but we will cease operations after the completion of Sunday's flight schedule. I know this is a terrible shock for many of you and this is not how our story was intended to play out."

The employee Castanet spoke with indicated there was a virtual town hall with staff on Thursday afternoon outlining the company's demise.

"They're going to do a scaled shutdown and are supposedly going to work Saturday and Sunday. They're not just closing the doors and locking people out. So salaries will be paid and people that have investments or RRSPs and TFSAs, that's all going to come. So they're not just going to leave everybody unpaid. So it sounds like it will be a logical spool down," said the employee, who has asked to remain anonymous.

In his message to employees, Sullivan says, "while we did our best, the pressures mounted and the risks increased, which has led to today's announcement."

Lynx Air adjusted its website Thursday and added a statement and a Q&A for customers along with an explanation of the financial pressures that have led to this closure

"The compounding financial pressures associated with inflation, fuel costs, exchange rates, cost of capital, regulatory costs and competitive tension in the Canadian market have ultimately proven too steep a mountain for our organization to overcome. It is with a heavy heart we leave the skies," says a statement on the Lynx Air website.

More Canada News