Aviation in Canada will become a bit less competitive this weekend, as ultra low cost carrier Lynx Air ceases operations.
Lynx Air will stop flying as of February 26, 2024
Lynx Air has announced that it will cease operations as of 12:01AM MT on Monday, February 26, 2024. The airline will continue operating through Sunday, but the company is telling people scheduled to travel on February 26 and beyond to contact their credit card company for a flight refund. Some other Canadian airlines are offering special fares for those who are impacted by Lynx Air’s closure.
The airline is blaming this unfortunate development on the compounding financial pressures associated with inflation, fuel costs, exchange rates, cost of capital, regulatory costs, and competitive tension. So yeah, that’s basically everything.
For those not familiar with Lynx Air, this is a Calgary-based ultra low cost carrier that launched operations in April 2022. The airline has operated a fleet of nine 189-seat Boeing 737 MAX 8s, though had plans to grow its fleet to 47 aircraft in the coming years.
Lynx Air has been flying to destinations across Canada, as well as to the United States, and even Mexico. In the United States, Lynx Air’s destinations have included Fort Myers, Las Vegas, Los Angeles, Orlando, Phoenix, and Tampa, with plans to also fly to Boston and San Francisco.
Canadian aviation is tough…
The airline business is challenging just about anywhere around the globe, but Canada is an especially tough market. Canada is a huge country (marginally larger than the United States in terms of land mass) with only 40 million people. Travel demand in the country is highly seasonal, and the population is heavily concentrated in several major cities (roughly 13 million people live in the greater Toronto, Montreal, and Vancouver areas).
When you add up those factors, running an airline just isn’t easy. Despite that, we’ve seen all kinds of new startups in recent years, and on top of that, the existing players have continued to grow as well (like Porter, with its huge Embraer E195-E2 growth).
There’s a reason we’ve increasingly seen attempted acquisitions, partnerships, and even liquidations, because running an airline in Canada isn’t easy.
Bottom line
Less than two years after taking to the skies, Lynx Air is ceasing operations. The Canadian ultra low cost carrier has been flying Boeing 737 MAXs primarily out of Calgary. Unfortunately the business model just didn’t work out. Hopefully all the staff at Lynx Air are able to find jobs at other carriers.
What do you make of Lynx Air going out of business?
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