Canadians booked with Lynx Air find themselves in limbo Friday after the ultra-low-cost-carrier announced it is going out of business.
Lynx Air said Thursday it has sought and obtained an initial order for creditor protection after facing “significant headwinds” in the past year.
The Calgary-based airline said it will continue to operate its scheduled flights until 12:01 a.m. MT on Monday, after which Lynx Air operations will cease.
Lynx said that despite growing its fleet and doubling its passenger volume over the last two years, it has faced rising operating costs, high fuel prices, exchange rates, increasing airport charges and a difficult economic and regulatory environment.
0:50 Lynx Air files for creditor protection, will cease operations
Lynx Air added it tried to explore a sale or merger, but ultimately the challenges facing the company’s business “have become too significant to overcome.” The airline employs 160 pilots and flight crew members, according to the Air Line Pilots Association union.
“This is a difficult day for everyone at Lynx Air and we recognize it’s an exceptionally difficult day for our loyal customers,” a spokesperson for Lynx said in a statement to Global News Thursday.
The company added that efforts are being made to assist passengers affected by the move, with those who have existing bookings advised to contact their credit card company to secure refunds for pre-booked travel.
What should Lynx customers do?
Lynx, as well as the Canadian Transportation Authority (CTA), have published advice for customers on navigating the upcoming closure.
According to Lynx, anyone who has a flight cancelled this weekend will be notified by email. If their flight is after Feb. 26, they can contact their credit card company for a refund. Lynx said its contact centre will not be available to assist with refunds.
Travel and flight vouchers will no longer be accepted once Lynx ceases operations, the airline added.
2:18 Canada aims to toughen air passenger bill of rights
However, Transport Minister Pablo Rodriguez said in a statement Thursday he expects Lynx Air to get stranded passengers back home as soon as possible, and to provide refunds if fares cannot be honoured.
He added his office is in contact with other airlines to see how they can help, “to ensure that passengers are put first.”
The CTA said on Thursday stranded passengers, or those with tickets for future travel with Lynx, should contact their travel agents or providers for alternate travel arrangements. However, those passengers may have to make those arrangements on their own, it added.
“Passengers who paid for their tickets by credit card should contact their credit card company to see what they are eligible for,” the CTA said.
“If travel insurance was purchased, passengers should contact the insurance company to see if their coverage includes such circumstances.”
2:34 Consumer Matters: How air passenger rights changes will impact travellers
If Lynx customers purchased their travel arrangements from a travel agent that is registered in Ontario, Quebec or British Columbia, they may be eligible for a refund from the provincial authorities responsible for travel, the CTA added.
WestJet and fellow ultra-low-cost-carrier (ULCC) Flair Airlines are helping to mitigate some of the issues for Lynx travellers.
WestJet said Thursday it will offer discounted fares for stranded domestic travellers, and capped fares for Canadian repatriation flights on non-stop WestJet routes previously served by Lynx.
Flair CEO Stephen Jones told Global News in a statement Friday the airline has added six recovery flights for impacted passengers and crew, and is exploring other options.
“The ULCC landscape is a challenging one, and the loss of a fellow disruptor only underscores this. Flair now stands as the sole ULCC in the country, and we believe that competition is essential for ensuring fair prices,” Jones said.
“While acknowledging other airlines’ discount efforts, it’s important to note that their discounted fares are still higher than our base fares. That is why ULCCs and competition are so critical. Maintaining a competitive market benefits consumers with lower prices and increased choice.”
‘Very sad day’ for airline community: ex-Air Canada official
Duncan Dee, a former chief operating officer at Air Canada, issued a statement on X Thursday, formerly known as Twitter, calling Lynx’s closure a “very sad day for Canada’s airline community” and the communities it served.
“Unlike many countries on earth, Canada, sadly, is inhospitable territory for new entrants, especially ultra low-cost carriers,” he said.
“Unless and until Canada has a serious look at its treatment of air travelers, airlines and airports as cash cows, this situation will never change.”
A very sad day for Canada’s airline community & the communities (like Fredericton/YFC) that Lynx & its employees served.
Unlike many countries on earth, Canada, sadly, is inhospitable territory for new entrants, especially ultra low cost carriers.
Lou Arab, communications representative for the Canadian Union of Public Employees (CUPE), said the union was “devastated” for their members impacted by Thursday’s announcement but will fight for them.
“We’ll make sure our members receive anything the company is legally obligated to provide that might include severance and back pay on a case-by-case basis,” he said in an interview with Global News. “We will fight to ensure that employees get everything they’re legally entitled to.”
CUPE represents 240 flight attendants at Lynx, Arab said.
2:02 Cost of WestJet’s shut down of Swoop
Lynx made its inaugural flight on April 7, 2022. After Monday, it will join former airline Swoop as the latest Canadian ultra-low-cost carrier to cease operations.
TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.
The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.
“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.
The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.
But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.
Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.
“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.
“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”
Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.
The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.
In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.
Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.
The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.
The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.
Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.
Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.
It will also re-evaluate its design ranks.
Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.
Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.
This report by The Canadian Press was first published Sept. 13, 2024.
VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.
No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.
About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.
Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.
Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.
A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”
This report by The Canadian Press was first published Sept. 12, 2024.
MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.
The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.
The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.
This report by The Canadian Press was first published Sept. 12, 2024.
