Lynx Air became the first aviation casualty of 2024 when it announced the cessation of flight operations due to financial pressures stemming from factors including inflation, fuel costs, exchange rates, regulatory costs, and competitive tension in the Canadian market.
The airline obtained an initial order for creditor protection and appointed FTI Consulting Canada Inc. to oversee its bankruptcy process, reporting insolvency and insufficient cash reserves to sustain ongoing operations.
Formerly known as Enerjet, Lynx Air was founded in 2021 and backed by Indigo Partners, receiving debt financing of CAD113.6m in instalments. As of December 31, 2023, the company owed CAD46.7m to trade creditors and CAD100.2m in principal, plus interest to Indigo.
Prior to its closure, Lynx Air was in advanced merger discussions with Flair Airlines, catering to 18 destinations, including 11 in Canada, six in the United States, and one in Mexico, operating a fleet of nine B737-8s with orders for additional units.
