By Skies Magazine | February 26, 2024 Estimated reading time 4 minutes, 49 seconds.
Air Canada will cap fares and add more than 6,000 seats in markets operated by Lynx Air, the company said in a statement on Feb. 23, a response to the ultra-low-cost airline’s announcement last week that it plans to suspend operations as of Feb. 26, 2024.
Calgary-based Lynx Air said it would cease operations at 12:01 a.m. Mountain Time on Feb. 26 due to pressures associated with inflation, fuel costs, exchange rates, cost of capital, regulatory costs and competitive tension in the Canadian market.
“Despite substantial growth in the business, ongoing operational improvements, cost reductions, and efforts to explore a sale or merger, the challenges facing the company’s business have become too significant to overcome,” the airline stated.
The company has been granted creditor protection in an Alberta court, the Globe reported.
“We are devastated for our members at Lynx and all the employees who lost their jobs today,” Mark Hancock, national president of the Canadian Union of Public Employees (CUPE), said in a statement on Feb. 23. CUPE represents 240 flight attendants at Lynx Air.
“While this is a hard day for the employees of Lynx, they are better off for belonging to Canada’s largest union. CUPE will represent them and defend their rights in these difficult times. We will fight to ensure the employees get everything they are legally entitled to.”
To offset some of the sudden loss of lower cost flights, Air Canada said it would add seats to its economy cabin on flights in markets served by Lynx Air within Canada, to the U.S., and to Cancun, Mexico.
“These fares will be available for purchase … through April 2, to cover the March Spring break periods across Canada and the Easter holiday period,” Air Canada stated. “[We] will not be able to honour Lynx Air tickets and Lynx Air customers are advised to consult the Canadian Transportation Agency website.”
Air Canada also intends to incrementally add 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 Mar. 19.
With winter and spring travel planning well underway, Air Canada cautioned that “flights are already relatively full and the carrier’s ability to increase capacity further is limited.”
Calgary-based WestJet said it would offer discounts to Lynx customers affected by the halt in operations, and is providing Canadian repatriation for transborder and sun destinations.
“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,” the airline said in a statement.
Flair Airlines also said in a statement that it has added recovery flights and additional options for Lynx passengers for the week of Feb. 26.
Flair also emphasized that “for all of Canada, our everday low fares are here to stay.”
