Lynx Air (Calgary) has announced it will cease flight operations as of 0001L (0701Z) on Monday, February 26, 2024, due to “compounding financial pressures associated with inflation, fuel costs, exchange rates, cost of capital, regulatory costs, and competitive tension in the Canadian market,” the airline said in a statement.

Additionally, it obtained an initial order for creditor protection from the Court of King's Bench of Alberta under the Companies' Creditors Arrangement Act (CCAA). FTI Consulting Canada Inc. was appointed to monitor Lynx Air Holding Corporation's bankruptcy process.

In its motion materials, Lynx Air reported it is currently insolvent and has insufficient cash reserves to allow it to continue to fund its current ongoing operations.

The company was founded in 2021 after being rebranded from Enerjet (Calgary). It was backed by Indigo Partners, which provided debt financing of CAD113.6 million Canadian dollars (USD84.2 million) in three separate instalments. The compounding factors were too steep a mountain for the organisation to overcome, Lynx said in a statement available on its website. As of December 31, 2023, Lynx Air's debt to trade creditors was CAD46.7 million (USD34.7 million), and indebtedness to Indigo in the amount of CAD100.2 million (USD74.3 million) in principal and CAD24.08 million in interest (USD17.8 million).

Earlier this month, Canadian media outlets reported that Flair Airlines (F8, Kelowna) and Lynx Air were eyeing the possibility of a merger, with conversations said to be in advanced stages. Lynx Air served 18 destinations, including 11 in Canada, six in the United States, and one in Mexico.

The ch-aviation fleets module shows that the Lynx Air fleet comprises nine B737-8s. The company also has orders for 29 additional units, including eight B737-8s and twenty-one B737-8-200s. It leased all of its active aircraft from five companies: AerDragon Aviation Partners, Aergo Capital, BOC Aviation, High Ridge Aviation, and SMBC Aviation Capital.

The Canadian market has recently been in a consolidation process following WestJet's acquisition of Sunwing Airlines and the discontinuing of its own LCC brand, Swoop.