Travel advisors have seen more than a few ultra low-cost carriers close up shop over the years but knowing the impact on travellers, and the employees soon out of work, it never gets any easier.

As Lynx Air starts to wind down its operations, with its shutdown timestamped for 12:01 a.m. MT this Monday, February 26, travel agents may be thinking of other failed ULCCs and LCCs like Canada 3000, Jetsgo, Greyhound Air, Roots Air, Harmony Airways and more.

With a few exceptions, like Canada 3000, ULCCs and LCCs aren’t typically a friend to travel agents, as they usually sidestep the agent distribution channel and commissions in favour of a cost-cutting B2C model.

But agents are impacted nevertheless when a low-cost carrier like Lynx Air shuts down.

There’s the blow to the airline industry’s reputation, plus more than a few travellers impacted by Lynx’s shutdown will be contacting travel agents looking for help.

“Too Steep A Mountain For Our Organization To Overcome”

In a message posted online, Lynx thanked travellers for their support. “It’s been a pleasure to offer you our affordable fares and great flying experience.”

The ultra low-cost carrier went on to say: “Tremendous work was put into the launch, growth and expansion of Lynx Air over the past two years … 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 that we announce Lynx Air’s departure from the skies. We hope in our absence that our vision to inspire More Canadians to Fly leaves its mark our passengers.”

According to information released by aviation analytics company Cirium, Lynx had nine Boeing 737 MAX 8s in service, with eight on order, plus 29 Boeing 737 MAX 8-200s on order.

In a FAQ section on its site, Lynx said passengers with booked flights up until and including Feb. 25 are asked to check the carrier’s flight status page. “Our passengers are our priority, and to ensure we bring as many of our travellers home as possible, we will continue to operate the majority of our flights through this weekend. If your flight is cancelled, you will be notified via email.”

Lynx added: “If your flight is for travel from Monday, February 26 onward, you can contact your credit card company and they will refund your flight. Please note: Lynx Air’s contact centre will not be available to assist with refunds.”

Passengers who are currently in destination are asked to check their flight status, as Lynx will be operating most flights through to Monday, February 26. “If your flight is scheduled for after February 26, you will receive a flight cancellation notification and you will be able to get a refund for your flight through your credit card company.  If you would like to move to a flight this weekend, reach out to our contact centre and they will do their best to assist you.”

WestJet Statament

In the wake of the news from Lynx, WestJet put out this statement  …

“WestJet is aware that Lynx Air has initiated CCAA proceedings and the resulting news that Lynx intends to cease operations at 12:01 a.m. MT on Monday, February 26, 2024.

“We recognize the immediate impact this information has on passengers and employees of Lynx, and we are committed to assisting where we can through a number of actions:

• All travel: 25% discount, by using discount code WESTJET, on all economy cabin fares on non-stop WestJet routes previously served by Lynx, for travel between February 22, 2024, and October 26, 2024, booking to be made up until February 29, 2024.
•  Canadian repatriation for transborder and sun: Fares are capped at $250 plus taxes and fees on all northbound economy cabin fares, on non-stop WestJet routes previously served by Lynx, for travel up until February 29, 2024, booking to be made before February 29, 2024.
• All domestic fares on nonstop WestJet routes previously served by Lynx, for travel up until February 29, 2024, will not exceed $500 plus taxes and fees.

“All bookings should be made online through westjet.com. WestJet has managed pricing to ensure fares reflect a reduction from what would typically be charged.

“We are communicating closely with government officials and supporting agencies that are also working to address the needs of those impacted.”

Canadians Were Ready To Travel

Lynx announced its coming debut during the pandemic, in 2021, and took to the skies in April 2022. The ultra low-cost carrier, a relaunch of Calgary-based charter Enerjet, got its start just as travel was starting to pick up post-pandemic.

The last of Canada’s travel restrictions were falling to the wayside, and Canadians were ready to travel. The next two years saw unprecedented demand for airline travel, hotels, cruises and more.

After those first flights from Calgary to Vancouver, Lynx quickly expanded with more routes in Canada, and then the U.S.

In recent days industry watchers were anticipating a merger announcement between Lynx and one of its competitors, Flair Airlines.

Industry watchers were also on alert for the possible failure of one or more of Canada’s ULCCs in a very crowded field of competitors. In November 2023 Porter Airlines CEO Michael Deluce said “I don’t believe that the traction’s there” for all the ULCCs in the marketplace.

Those thoughts were shared by airline industry expert John Gradek.

In a January 2024 interview with Travelweek, Gradek shared this insight amid intensifying fare wars: “The economics of such fare action will quickly be felt by those carriers with the weakest financial strength and I expect at least one, or potentially two, carriers not being able to withstand competitive pricing action, resulting in either consolidation or failure.”

Travelweek has reached out to TICO and will post information as it becomes available.

Source: Travelweek